Understanding how to apply markups is essential. This article explores the tools and techniques that can help you leverage the power of markups with Curate.
What are markups?
A markup refers to the percentage or multiplier added to the cost of your ingredients to determine the selling price. It's a common practice for businesses to markup their products to cover not only the cost but also to generate a profit.
The markup percentage can vary depending on factors like overhead costs, the level of competition in the market, and the desired profit margin. Curate offers flexibility with how you calculate your markups providing options that best fit your business.
Types of Markups
Percentage Markups
This is a common method used by businesses to determine their retail price. Percentage markups mean that you take the cost and said percentage to this cost as a markup to find the suggested retail price.
Click here for an example.
Click here for an example.
Let's calculate the selling price with a cost of $200 and a 250% markup:
Calculate the Cost: The cost of the product is $200.
Choose the Markup Percentage: In this case, you want a markup of 250%.
Apply the Markup: Multiply the cost by the markup percentage (in decimal form). To convert 250% to decimal, divide it by 100:
Markup Amount = Cost × (Markup Percentage / 100)
Markup Amount = $200 × (250 / 100)
Markup Amount = $200 × 2.50
Markup Amount = $500
Calculate the Selling Price: Add the markup amount to the original cost to determine the selling price:
Selling Price = Cost + Markup Amount
Selling Price = $200 + $500
Selling Price = $700
With a $200 cost and a 250% markup, the selling price would be $700.
Markup Multipliers
This is similar to percentage markups however Unlike percentage markups multiplier markups involve multiplying the cost by a fixed number. Please see example 2 for a labor markup example.
Click here for example 1
Click here for example 1
Let's calculate the selling price with a cost of $200 and a 3.5 multiplier:
Calculate the Cost: The cost of the product is $200.
Choose the Multiplier: In this case, you want to use a multiplier of 3.5.
Apply the Multiplier: Multiply the cost by the chosen multiplier:
Selling Price = Cost × Multiplier
Selling Price = $200 × 3.5
Selling Price = $700
So, with a cost of $200 and a 3.5 multiplier markup, the selling price would be $700.
Click here for example 2, Labor Markup
Click here for example 2, Labor Markup
Total Price = (Markup)(Labor)(Cost)
(3x markup)(20% labor)(Cost)
(3)(1.2)(Cost)
3.6 is your new markup, which includes 20% labor
(3.6 Markup) ($2.5 rose)
$9 total price to charge your customer
Curate simplifies this process for you by seamlessly handling markup calculations. With Curate, you can easily set your desired markups, whether you prefer percentage markups or multiplier markups, and Curate takes care of the rest.
Say goodbye to manual calculations and Hello to the efficiency of automated pricing!
Category Markups
Markups can also be applied directly to specific categories in the system. Here's a short video that explains the benefits of this and how it works.
When adding or editing your markup profile, under "Advanced Category Rules" you may add a specific markup amount for any category available in your account!
You'll just want to click on "+ Add category". Then select your preferred category and add its specific markup to it.
How Profile Markups Work
Your selected markup calculates a suggested price for your line item factoring in the cost of the ingredients added into your recipe with the markup selected. You are then able to enter your desired retail price for the line item using this suggested price as a trusted guide.
In the photo above you can see that based off the cost and the 300% Percentage Markup a suggested price of $346.84 is calculated. Thanks to this calculation the line item price can be rounded up to $350, confidently covering cost and ensuring profit.
Creating Markups
Access your Settings - General section, via the menu on the left side of your dashboard and scroll down to Markup Profiles. Then click + Add markup profile to add a new Markup profile. This is also where you can edit current Markup profiles or delete them.
Once you clicked + Add markup profile, you will have the option to select Multiplier or Percentage after you name the profile and enter the markup amount.
To delete a Markup profile, click the three dots "..." at the end of the row and Delete markup profile will be a selectable option.
Be sure to save your progress on the top right corner before leaving the page!
Applying Markups to a Project
Setting a default markup profile for an entire project ensures all items within it follow the same pricing rules by default.
Navigate to Project Overview:
Open your selected project and go to the Project overview page.
Locate the Markup Menu:
Click on the Markup dropdown menu to view your available profiles.
Select or Create a Default:
Choose an existing markup to set it as the default for this project. If you need a new configuration, click + Add new from the dropdown menu to open the creation tool.
Applying Markups to Specific Products
You can assign markups to individual products in two different ways, depending on whether you want the change to apply universally across your account or just for one specific job.
Applying a Markup in Your Catalog (Global)
Use this method when you want a product to have a specific markup applied every time it is added to any future project.
Navigate to Your Catalog:
Go to your main Catalog or product database.
Select the Product:
Click on the specific product you want to update to open its details.
Assign the Markup:
Locate the Markup dropdown menu and select the profile you want to apply globally to this item.
Applying a Markup Within a Project (Project Override)
Use this method if you want to override a product's default markup only for the specific project you are currently working on.
Go to the Orders Tab:
While inside your project, navigate to the Orders tab.
Open the Item Panel:
Click on the specific product you want to adjust to open the detailed item panel.
Assign the Markup Profile:
Locate the Markup profile dropdown inside the item panel and select the desired markup. This applies the new pricing rule to this product for this project only, leaving your global catalog untouched.