In your project below the list of parts, you’ll see a section labeled “Markup” with three parts below it: “Material”, “Labor”, and “Subcont”. These allow you to set your markup percentages for each of the three categories.
In our the article about how costs are calculated for parts, we discussed that there are three aspects of the price for each part: material, labor, and subcontractor costs. Parts can either have material and labor or be subcontractor costs, this is to differentiate between costs to your company (if you buy the materials or pay the laborer) or a subcontractor (subcontractor buys the materials and you pay the subcontractor).
You can then markup each of these categories separately for your project. Lets imagine we have a part that is for providing and installing cabinets. The costs for that part might be like so:
It is important to remember that this is the cost before any markup is applied (think of it like, the cost to you not the cost to the customer). Now let’s decide on our markup percentages. You can change these easily by either typing into the percentage boxes, or clicking the + or – buttons.
These percentages will be used to calculate the markup for all of the material and labor costs (not just for the single part that we have in this example. Let’s see how the markup in dollars gets calculated:
Materials- $500 x 50% = $250
Labor- $100 x 25% = $25
Meaning that the total costs for this part (including the markup) will be:
Materials- $500 + $250 = $750
Labor- $100 + $25 = $125
Total Cost- $875
You can see now how the markup gets applied to your parts. You can set your default markup percentages (so you don’t have to change them for each project) in Options-> Miscellaneous