Using Markups
When pricing products in Pro Select, you have the option of adding a markup. A markup is an amount added to the cost price to determine the retail price of your products.
Markup values must be greater than 1.0. For example, using a markup of 1.5 would be a 50% markup. Using a markup of 2.5 would be a 150% markup.
Practical Example
You have a product that costs $10 to produce at a lab.
- If you apply a 3.0 markup, the retail price to your Client is $30
- If you apply a 5.5 markup, the retail price to your Client is $55
Price rounding in a price list ensures a consistent appearance of prices. When a markup is added to an item's price, the result is precise but may look inconsistent. Price Rounding settings allow you to standardize prices endings to .99, .98, or .49, with options to round up or to the nearest specific value. This final figure is a more convenient and appealing number. Markup price rounding is set by going to Settings > Pricing & Ordering > Pricing.
Example: For an item priced at $38.09 after markup, the rounded prices could be:
- Round up to .98 = $38.98
- Round to Nearest .98 = $37.98
- Round to Nearest $10.00 = $40.00
- Round up to $10.00 = $40.00
- Round to Nearest $48.00/$98.00 = $48.00
- Round up to $48.00/$98.00 = $48.00
- Round to Nearest $100 = $100.00
There are three tiers for rounding based on the item's value:
- For Prices up to $100.00
- For Prices up to $1,000.00
- For Prices above $1,000.00
This tiered approach offers flexibility. For items under $100, you can round up to the next dollar. For items between $100.01 and $1,000, round to the nearest or up to the next $10 increment. For items over $1,000, round up to the nearest $100.
For example, if an item's calculated price is $353.79, the rounded prices can be:
- Round up to .98 = $353.98
- Round to Nearest $10.00 = $350.00
- Round up to $10.00 = $360.00
- Round to Nearest $48.00/$98.00 = $348.00
- Round up to $48.00/$98.00 = $398.00
- Round to Nearest $100 = $400.00
- Round up to $100.00 = $400.00
This system ensures your prices are styled consistently across your price list.