I'm not suggesting you shouldnt mark it up, after all you do need to pay for it, collect it, cart it around etc. Perhaps a 100% markup as in the above example is excessive, but as soon as your mark up brings the cost above what anyone can buy it for, its then available cheaper elsewhere...
Every business marks up all its products, wether its a electrical contractor, car mechanic or veterinarian. If the product is available cheaper, then i see no problem with the guy buying it himself, as long as its up to scratch and is properly certified to do the job.
Just the same as you can take your own brake pads along for the garage to change, or get a prescription from your vet and buy the drugs you require online.
The electrician will have arrived at whatever balance of competitiveness and net income works for him. If he's trousering large amounts of excess money, no matter how charged for, he'll eventually run out of work.
If he's not trousering enough to pay his bills. eventually he'll go bust.
So assuming he's reached equilibrium, his mix of earnings will be so-much from labour and so-much from markup, if you deny him the latter he will simply increase the former - he will have no choice in the matter if he wants to stay in business.
So overall you will be paying more, as you'll have materials at a higher base price than he would have paid,
plus his displaced markup anyway.
Simples.