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Markups are additional amounts, such as tax, overhead, and profit, you add to your raw (catalog) costs to determine your true cost and the price you need to charge your customer. Markups are entered as percentage values in the Markup List’s "Tax/Markup %" column, and may be applied either to the cost (what you pay for the item, such as tax), or the price (what you need to charge your customer).
You may also mark down a cost by entering a percent value in the Discount % column instead of the Markup % column.
There are ten Markups in the standard Markup List. The first five Markups in the list are Cost Markups and are arranged by Class (i.e., Material, Labor, Equipment, Subcontract, and Other). These are referred to as Class Markups.
The second five are Price Markups, and apply to all Items, regardless of Class. Because they apply to all Items, they are often called Global Markups.
The Class Markup descriptions cannot be changed, but their "Tax/Markup %" values can. The percentages entered applied to only the specified column of all the Items in your Bid. For instance, the Material Class Markup only applies to costs in the Materials Cost Column of each Item. So you could have a different tax on material than on equipment, for instance.
Global Markups apply to ALL items. Their Descriptions and percentage (Tax/Markup %) values can be changed. They increase the Bid Total Price. Examples of Global Markups are profit, overhead, and bonds.
The names of the Markups apply to all Bids in the Price Book but the Markup percentages are stored with each SPECIFIC Bid.
Each Global Markup may be either Added or Compounded. (Class Markups are always added.) The first markup may be either without effect. If it is Added, the percent amount is based on the Bid Total Cost (middle line). If the Markup is to be Compounded, the amount is based on the running total (the markup amounts above this markup which have been already added in.) For instance, if you have two Global Markups (in order) OVERHEAD and PROFIT and want the Profit’s percent to be calculated using the Bids Total Cost and to include the overhead’s amount, then use Compound.
You may change the order of the Global Markups by just entering the name where you want it. Be sure to change the percentage if you re-type a Markup or the Total Price might change if "Compounded."
We have already introduced the Tax/Markup % and Description columns in the Markup List. Here is an explanation of all the columns in the listing:
Tag Allows you to select certain Markups.
Description In the Global Markup section (last 5), enter characters to describe markups, i.e., profit, bond, etc.
Tax/Markup % Enter a percentage amount to markup all Items in the Bid. You may not have both a Markup and Discount %.
Discount % Enter a percentage amount to discount all Items in the Bid. This is much like entering a negative Markup % (but that is not allowed). You may not have both a Markup and Discount %.
Amount This is the Cost with the Markup percentages applied. If you change the Amount, EasyEst Estimating will back-compute an appropriate Tax/Markup % in order to achieve the specified amount. Be warned, however, that if you change you Bid costs, the Amount will change accordingly. (The Tax/Markup % will stay the same, though.)
Add/Comp Add or Compound the percentages to the Amount above it.
Note: In the first group of Cost Type markups, each one is Added on the Base Raw Cost no matter if you say you want it compounded. (Also, the first one in the second session under Global Markups will be treated as Add too.)
Enter an "A" if you want to add the amount to the Bid’s Total Cost. Enter a "C" if you want the markup percentage to apply ON TOP OF the Markup Amounts above it.
Base Amt The Base Amount shows the total of all costs which apply to this Markup. For instance, for a Labor Class Markup, it would show the total Raw Cost of all Labor Cost Columns in the Bid. For Global Markups, the Base Amount will be the Bid Total Cost for Added Markups, and the current running total (i.e., add up all the previous Amount columns) for Compounded Markups.
The Markup Amount = Base Amt x Markup %.
The Base Amount cannot be changed directly by you; it is a computed column.
Bid % Shows the percentage of the Markup Amount contributes to the Bid Total Price. The Bid Total Price line will always show 100%, and the Bid Total Cost line will show the Bid Raw Cost’s Bid % plus any Cost Markups’ Bid %s.
Because percentages are only displayed to the nearest whole number, the totals may not add up exactly. For instance,
33.3% + 33.3% + 33.3% = 100.0%
would look like
33% + 33% + 33% = 100%.
The Bid % cannot be changed directly by you. It is a computed column.
See Also: Bid Item / Markup Calculation, Cost Type Markups, Cost vs. Price
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