Markup is the percentage difference between the actual cost and the selling price.
Margin is the percentage difference between the selling price and the profit.
(Here is an article about Margin vs Markup, just in case!)
There are 3 different ways you can define the markups or profit margins on the equipment in your projects:
Use the Define Markups tool to update all items in your project at once
Select which items to update in bulk with the Markup or Margin column in the Builder
Define a margin or markup for individual items within the Add/Edit item window
Define Markups or Margins for All Project Items
The Define Markups tool is found within the Edit Items menu of the Builder. Clicking this button will reveal all of the tools within the menu.
Once the menu is open, you will also see checkboxes appear next to all of the items in the builder.
First, select the checkboxes for the items you would like to markup, and then click the "Define Markups" option.
In the window that pops up, you will have the option to set either a Markup or a Margin.
NOTE: Most users will use the markup tool to set their price based on cost. However, if there is a specific desired profit margin, we give you the ability to achieve that using the margin field on the right.
2nd NOTE: Markups are based on the COST of items. If you do not have a cost set, the markup will still be applied, making the Price of the item $0.00.
Once you have entered your desired percentage, click the Update button beneath the field that you used. This will apply the Markup to all of the items that you selected.
Define Markups or Margins for Specific Items in Bulk
Enterprise users can also define markups or margins for individual items by using the Markup % column in the Builder.
First, you'll need to enable the Markup % column by clicking the Edit Columns button on the top right of the Builder, select the checkbox for Markup %, and then click Save.
(The Margin % column is active by default.)
Once the column is enabled, click the Edit Items button to open the line items for editing, enter the desired markup % or margin % for each item, and click Save.
After you've edited the margin/markup, you can use the Smart Rounding tool to round out your prices.
You can also lock items to keep them from being affected by bulk margin/markup changes.
Define a Margin or Markup for Individual Items
To define the margin or markup for an individual item, you can open the Edit Item window by clicking the item name in the Builder.
Under the fields for Cost and Price, you can toggle the field to represent either the Margin or the Markup.
Entering the margin or markup % here will automatically calculate the sell price based on the cost, and update in real time.
Locking the Margin, Markup, or Sell Price
Once your desired values are set in the Edit Item window, you also have the ability to lock the margin or markup, or to lock the price.
Locking the margin or markup % will retain the % calculation based on the cost. Any changes made to the Cost field will update the sell price based on the % set. When the margin/markup is locked, the Sell Price field will be grayed out and cannot be manually adjusted.
Alternatively, you can choose to lock the Sell Price field to ensure that the price of your items will not change. Adjusting the cost of your items with the sell price locked will update the margin or markup % accordingly. When the price is locked, the Margin/Markup field will be grayed out and cannot be manually adjusted.
We hope this helps! Please reach out to us in support chat if you have any questions 🙂