The Default Markup value sets the “Markup %” in the area module when a price list is selected. With the Markup % tool, ActionFlow adds a markup to ALL line items.
ActionFlow first calculates the unit revenue based on the formula for each line item that is set in the Cost Definitions grid for the price list. It may also pull in unit revenue that is in the override section or entered in another area.
Then the markup % is applied to the unit revenue for all line items.
ActionFlow can also add a default margin to materials so be sure to understand the difference between how ActionFlow calculates both.
Note: Set only a default margin OR default markup for price lists.
Figure 1. There is a 20% default markup for this price list
Figure 2. The Markup % in the area module is set once the price list has been selected
After the markup % is set, it can be edited. If you set the default Markup value for the price list in the SKU items page and do not see it in the area module, reselect the Price List.
In this example, the unit revenue is the same as the cost for the slab, $839. The 20% markup leads to a $1007.57 revenue.
Figure 3. In this example, a 20% markup is applied to a slab that costs $839.64 which is the same value as the unit revenue. The resulting revenue is $1008.
The unit revenue of the cutout ($100 each), labor charge ($18/SqFt), and sink ($100 each) are set in the Cost Definitions grid for this price list.
The revenue after markup for the sink and cutout is $120 and $21.6/SqFt for the labor charge.
Figure 4. The markup value is applied to the calculated unit revenue based on the cost definitions for each line item.