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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.
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 cost 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.
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.
If you have feedback about quote margins, let our team know by sending an email to Richard Liebrecht, Product Manager at email@example.com.