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What price should go in the quote so the job really makes money? Enter the cost of materials and labour and the margin you want.
Margin: price = cost ÷ (1 − margin) · Markup: price = cost × (1 + markup)
Materials, labour, travel, subcontractors and the share of overheads that falls on the job.
Margin is profit as a share of the price, markup is a percentage on cost. A 25 % margin is a 33 % markup.
Compare with the market. If the price is too high, look for savings in the cost, not in the margin.
What price should go in the quote so the job really makes money? Enter the cost of materials and labour and the margin you want.
Margin is calculated on the selling price, markup on cost. A €1,000 cost with a 25 % margin gives €1,333, with a 25 % markup €1,250.
Usually 15 to 30 %, depending on the type of job, the risk and the share of materials in the quote.
In AdBooks every job is a project: quotes, invoices, hours and expenses add up so you see the real profit and margin.