Margin on Materials
The percentage margin applied to the materials is subject to the following criteria:
- Volume of units produced per annum
- The amount of component and finished goods stock we need to hold and over what period
- The length of the contract
We do not necessarily apply a fixed percentage rate to all of the bought in items. Split rates are frequently agreed with large value items being subject to a reduced percentage. Large value items can also be free issued where no percentage margin is applied.