Markup % is the amount by which the cost of a product is increased in order to derive the selling price.
Herewith is an example of how a markup can be calculated:
- The printing is costing the agency R10,000. You are charging the client R20,000. The margin amount will be R10,000.
- Markup% will be the % that the agency will add to the R10,000, which in the example above, will be 20%.
For the purpose of this exercise you know the cost of the work to be done and the total amount.
The cost is R10,000 but you are charging the client R15,000.
Within Chase, the Markup % will be automatically calculated. Remember that there are implications for increasing the amount to be charged to clients as you might overcharge them.
Here's a visual demonstration for calculating the Markup % when you have the cost and total amount
Below are steps to show you how to calculate the Markup % when you have the cost and total amount.
- Open the CE that you want to calculate markup for.
- Click the Add Lines button to add the work type to be calculated.
A new record will be added at the bottom of the other work types.
- Click the drop down arrow on the Work Type field, and select Print (the Internal option).
- Enter the amount in the @Cost field as the cost for the work to be done.
Notice that once you put in the cost or the work type, the total amount is added automatically and the amount is the same as the one in the @Cost field.
- Enter the cost that you want to charge the client in the Amount field.
The Confirm change dialog appears.
- Click the Yes button to apply changes to the Markup.
Notice that the 50% markup has been applied.
- Click the Save button to save changes made to the cost sheet.