Below your project details, you’ll find the “Markup” section. This is where you will add markup percentages to your project.
You have three markup settings: “Material”, “Labor”, and “Subcontractor”. These allow you to set your markup percentages for each of the three types of costs.
In our article about how part costs are calculated, we discuss the three cost aspects of a part: material, labor, and subcontractor costs. Parts can have any combination of material, labor, and subcontractor cost.
The costs we include in our library are the cost to you. Then, you can markup each cost category separately. Let's imagine we have a part for providing and installing cabinets. The costs for that part might look like this:
It is important to remember that this is the cost before any markup is applied (the cost to you - not the customer.)
Now, let’s decide our markup percentages. You can adjust markup using the + and – buttons:
In this example, we'll use these markup percentages:
These percentages will be used to calculate the markup for all of the material and labor costs in the project. Let's see how the markup gets calculated, in dollars:
Materials- $500 x 50% = $250
Labor- $100 x 25% = $25
The total costs for the project will be:
Materials- $500 + $250 = $750
Labor- $100 + $25 = $125
Total Cost- $875
Now you see how markup is 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.