Understand Price Setup Wizard calculationsLast updated on 03/23/2022

• If you have inventory tracking enabled, material and equipment costs are calculated using costs from the Primary Vendor for that item. Account configuration is required to use inventory tracking. Please contact your success or implementation manager for details.

• Your material mark-ups settings are also used to mark up equipment costs.

• If a customer’s membership includes a discount, the discount is applied to the standard price. If the membership discounted price and the member price as calculated by the Wizard are different, the lesser price is used on the invoice or estimate.

The Price Setup Wizard calculates the following service and equipment prices in bulk:

• Standard price—Basic price of the service or equipment item

• Member price—Discounted price for service locations with an active membership

• Add-on price—Price of the item if added on to another item on the estimate or invoice

• Member add-on price—Discounted add-on price for service locations with an active membership

Calculations are based on settings in your pricebook:

• Sold hours—Estimated number of labor hours estimated to complete the service or install the equipment

• Material costs—Cost of materials for material items attached to the service or equipment item

• Equipment costs—Cost of equipment for the equipment item Note: Equipment costs are only used to calculate equipment item prices. They are not used to calculate service item prices.

• Mark-ups—Mark-up percentage applied to material and equipment costs

And your Price Setup Wizard settings:

• Billable rate—Amount charged per hour for labor

• Surcharge ($)—Flat fee added to the service item price. For example, a dispatch fee.

• Surcharge (%)—Percent of the item price added as a surcharge

• Member Discount—Percent discount applied to the standard price for jobs at service locations with a membership

The following equation is used by the Price Setup Wizard:

[sold hours * billable rate] + [surcharge] + [material costs] + [material costs * material mark-ups]

Note: If the surcharge is a percentage, it is applied to [sold hours * billable rate] + [material costs * material mark-ups].

Standard price example

A toilet installation service includes:

• 1.5 sold hours

• $250 in material costs

You set your materials mark-up rate at 50%. For a 50% materials mark-up, multiply the cost of the materials by 1.5.

In the Price Setup Wizard, under Primary Modifier, you enter:

• $200/hr billable rate

• $50 surcharge

The Wizard makes the following calculation for the toilet installation item price:

[1.5 hrs * $200/hr] + [$250 * 1.5] + $50 = $725.00

When calculating the member price, you can choose to apply the member discount you enter to:

• Labor only

• Labor and service

• Labor, service, and surcharge

Note: In this calculation, service is material and equipment costs including mark-ups.

Member price example

Using the previous example, in the Price Setup Wizard, under Primary Modifier, you enter:

• 5% member discount

• Apply the discount to labor and service, before the surcharge

The Wizard calculates the member price as follows:

[standard price] - [(labor + service) * discount]

$725 - [($300 + $375) * .05] = $691.25

You can set separate billable rates, member rates, and surcharges for add-ons. Add-on prices use the same calculations as non-add-on prices.

• Visit ServiceTitan Academy to enroll in Setting Your Prices

• See Attach materials to service or equipment items