Price Setup Wizard: Individual vs. aggregate material mark-upsLast updated on 09/09/2022
Things to know
When you configure your account for material mark-ups, you have the option of individual or aggregate mark-ups.
If your account is configured for individual material mark-ups, material mark-up rates are applied at the individual item level.
If your account is configured for aggregate material mark-ups, the material cost determine the mark-up rate. For example, you can set a mark-up rate of 40% for all material items that cost under $100.
To change your material mark-up setting, contact your success or implementation manager.
Set up your material mark-ups
The material mark-up table is located in the Materials section of your pricebook (Pricebook > Materials). Follow the steps in Setup material mark-ups.
Note: Newly entered mark-ups are not applied to pricebook items until you run the Price Setup Wizard.
Individual material mark-ups example
Example pricebook details:
Service 001 sold hours: 2 sold hours
Cost of Material A: $50
Cost of Material B: $150
Material Mark-Up Table:
15% mark-up on material costs between $0 to $100
20% mark-up on material costs between $101 to $200.
Example Price Setup Wizard details:
Billable rate (hr): $100
Surcharge: $0
This would be the Price of Service 001 with individual material mark-ups:
[2 sold hours x $100 billable rate per hour] + $0 surcharge + [$50 cost of Material A] + [15% individual item mark-up] + [$150 cost of Material B] + [20% individual item mark-up] =$437.50
The Price of Service 001 is $437.50.
Note: The same mark-ups apply to Member Price, Add On Price, and Member Add On Price.
Aggregate material mark-ups example
Example pricebook details:
Service 001 sold hours: 2 sold hours
Cost of Material A: $50
Cost of Material B: $150
Material Mark-Up Table:
15% mark-up on material costs between $0 to $100
20% mark-up on material costs between $101 to $200.
Example Price Setup Wizard details:
Billable rate (hr): $100
Surcharge: $0
This is the Price of Service 001 with an aggregate material mark-up:
[2 sold hours x $100 billable rate per hour] + $0 surcharge + [$50 cost of Material A + $150 cost of Material B] + [20% aggregate mark-up] =$440
The price of Service 001 is $440.00.
Note: The same mark-ups apply to Member Price, Add On Price, and Member Add On Price.
Important note: Some features may not be currently included in your account and additional configuration may be required. Please contact technical support for details.