How Do I Price My Ready Mix Concrete Services?
- Nate Jones, CPCU, ARM, CLCS, AU
- Nov 17
- 2 min read
Pricing ready mix concrete services correctly is critical for profitability and competitiveness. Whether you’re starting a new concrete business or looking to refine your pricing strategy, understanding the factors that influence cost will help you set rates that cover expenses, attract customers, and deliver healthy margins.
Why Pricing Matters
Underpricing can lead to losses, while overpricing may drive customers to competitors. A well-calculated pricing strategy ensures:
Coverage of material and labor costs
Competitive positioning in your market
Sustainable profit margins
Key Factors That Affect Ready Mix Concrete Pricing
1. Material Costs
The cost of cement, aggregates, sand, and admixtures varies by region and supplier. Monitor market trends and negotiate bulk purchase discounts.
2. Delivery and Transportation
Mixer truck fuel, maintenance, and driver wages significantly impact pricing. Consider:
Distance to job site
Traffic and delivery time
Number of trucks required
3. Labor Costs
Include wages for plant operators, drivers, and administrative staff. Factor in overtime for peak demand periods.
4. Overhead Expenses
Account for:
Facility rent or mortgage
Utilities
Equipment depreciation
Insurance premiums
Explore More in Ready Mix Concrete Cost Guide
5. Insurance Costs
Insurance is essential for risk management and compliance. Common policies include:
Estimated annual insurance cost: $8,000–$20,000 depending on coverage and business size.
6. Profit Margin
Most ready mix concrete businesses aim for 10%–20% profit margin after covering all costs. Adjust based on market demand and competition.
Tips for Competitive Pricing
Offer volume discounts for large projects
Provide transparent quotes
Include delivery charges upfront
Review pricing quarterly to reflect market changes
Final Thoughts
Pricing ready mix concrete services requires balancing costs, market conditions, and profitability goals. Don’t forget to include insurance in your calculations—it’s a critical expense that protects your business. At Wexford Insurance, we specialize in concrete manufacturing and delivery insurance, ensuring your trucks, batch plants, and employees are covered.
Ready to secure your business?
Contact Wexford Insurance today.
