Product Pricing : Cost Plus

Tyler MacDonald Updated by Tyler MacDonald

This article will explain what Cost Plus is and how you can use it within a product

Before proceeding with this article, please read "How to Turn on a Product Template"

Cost Plus: The final price is calculated based on the cost of your materials, labor, and machine rates added to a percentage you priced for Markup Percent. Example:  If material, labor, and machine rates total $100, and you want to mark up this cost by 50%, then your selling price will be $150.00 ($100+50%*$100)

Let's build a simple Cost+ product to see this in action.

  1. Add New Custom Product
  2. Ensure the Product you are working with has the "Add Product Template" check box selected

  1. Once that is checked, scroll down to the Product Template that appears at the bottom of the screen.
    Set Pricing Method to Cost Plus and let's use 50 in the Markup Percent box

Remember!

Cost Plus: The final price will be calculated based on the cost of your materials, labor, and machine rates added to a percentage you priced for Markup Percent. Example:  If material, labor, and machine rates total $100, and you want to mark up this cost by 50%, then your selling price will be $150.00 ($100+50%*$100)

Markup: The blanket percentage you'd use to mark up your product. This only works for Cost +

  1. Open Modifiers and let's add in a Numeric Modifier called Install_Hrs. If you don't have it, you can make it on the fly by clicking +Add New Modifier

For the next step, you can use any Labor Rate from your system. For this example, I am using a Labor Rate of $1.00 see image below
  1. Click Default Items and click +Add New
  2. From the Add New Default Item Menu
  • Item Type: Labor Rate
  • Labor Rate: Installation - Outsource ( Use your own here, mine is set to $1.00 for demonstration )
  • Modifier: Choose the drop-down and select Install_Hrs

The Modifier you choose called Install_Hrs came from the one we added at the beginning of the process. If you add more Modifiers they will show up in the list. It is a quick way to feed in information to multiply against your labor rate. We are saying (Labor Rate * Install_Hrs) with this selection
  1. Now select the "Check Pricing" Tab, and test out your Cost Plus in action

Publishing Your Product

When you're satisfied with your product, you must publish it to make it available for use in Quotes, Sales Orders, or Invoices.

You can identify if your product is in "Draft" mode by the tag underneath the title.

To publish a product, go to the blue action button and select "Publish Product."

If you need to unpublish it later, select the blue action button again and choose "Convert to Draft."

How did we do?

Products - Pricing Type - Formulas

Increasing Product Prices by a Percentage in shopVOX - PBase

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