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Add markup to your products and services when building a quote and see your estimated margin so that you set the perfect price.
When putting together a quote, you want to understand the estimated margin so that you can turn a profit. You can add a markup to the cost of each product or service on your quote. The difference between the cost and the sales price will only be visible to you.
You can add markups to each line item that appears on a quote. This internal calculator is only visible to you - your client only sees the marked-up price. A total of the costs and estimated margin are shown at the bottom of the quote to help you set the ideal markup and turn a profit. This estimation is only visible to you when building or editing the quote.
To add a markup, click the Price field, then click Add costs.
If your line items already have a default price, the markup will already be set to zero. Go ahead and add a cost–the markup will adjust automatically. Typing a percentage into the markup field will recalculate the price for the item.
When the quote is converted to a job, the unit price from each line item on the quote carries over to the job so that the line items on the job have the same quantity, unit price, and total as on the quote. Markups are only visible on the quote, so you won't see the Add costs option on the job level, but the unit price will include the markup.
Note: The totals that appear under the line items on a job do not include taxes, deposits, or discounts.
If you would like to save a custom line item from the quote to your products and services list so that you can use it again, hover over the line item name and click Add to products & services. This line item will be saved to your products and services list with the name, description, unit cost, markup, unit price, and image becoming the default for this line item.
The costs and estimated margin for the entire quote appear in a line under the total. Keep in mind that markups and margins are different which is why the markup percentage will be more than the estimated margin for the quote. Markups reflect how much more your selling price is than the amount the item costs you, whereas a margin reflects your revenue after costs.
Note: The estimated margin is calculated as (price - cost of goods sold)/price.
Markups in client hub–what your client sees
Markups added to a line item as well as the estimated margin are not visible to your client. In client hub, they will see a unit price that includes the markup. This is the same quote experience as if the line items didn't have a markup.
To view what your client sees in client hub, from the quote click More Actions > Preview as to view the quote in client hub.
Add to your products and services
To set the markup as a default on a specific line item, the unit cost, markup, and unit price can all be saved.
To add a markup, navigate to the Gear Icon > Settings > Products & Services. New products and services can be added by clicking + Add.
Next, enter the details of the item you're adding to your products and services.
- Item type dropdown: Select if this is a product or service.
- Name: The name of the product or service.
- Description: A description of the product or service.
- Unit cost: The cost that you pay for a product or what a service costs you.
- Markup: The percentage added to the unit cost to calculate the unit price.
- Unit price: What your client pays for a product or service.
- Photo: An image of the product or service.
- Checkboxes: Check the box for "exempt from tax" if tax is not charged on this item.
- Note: When editing a product or service, there is another checkbox for "available on quotes, jobs, and invoices". When this is deselected, this item is considered "inactive" and isn't available on quotes, jobs, or invoices.
Once all the details are entered, hit Create to save this time to your products and services list.
Turn off quote markups
If you would like to turn quote markups off, navigate to the Gear Icon > Settings > Products and Services. From the Costs section, toggle the switch to Off.