Understand Price Setup Wizard calculationsLast updated on 03/23/2022
The Price Setup Wizard uses your rates, mark-ups, and cost to calculate service and equipment item prices across subcategories, categories, or even your entire pricebook.
Things to know
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.
Price Setup Wizard calculations
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
Calculate standard prices
The following equation is used by the Price Setup Wizard:
[sold hours * billable rate] + [material costs * material mark-ups] + surcharges
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
The Wizard makes the following calculation for the toilet installation item price:
[1.5 hrs * $200/hr] + [$250 * 1.5] + $50 = $725.00
Calculate member prices
When calculating the member price, you can choose to apply the member discount you enter to:
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
Calculate add-on prices
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.
Want to learn more?
Important note: Some features may not be currently included in your account and additional configuration may be required. Please contact technical support for details.