Video - InEight Estimate - Job Markup (Profit)

TRANSCRIPT

To easily view your job's markup and/or profit, open the data map by selecting the Price tab, then select the Data Map icon. Notice how the different segments within the pyramid coincide with the percentage amounts that make up direct costs and direct costs and target profit. The target price is comprised of the total of the direct cost and direct cost and profit. This is the final price that you want for your bid.

To add markup or profit to let's open the PBS or Price Breakdown Structure form by clicking the Price tab, then selecting Price Breakdown Structure. The PBS form is divided into the price breakdown structure on the left with each layer displaying an amount and the percentage of the target price that this amount represents. The price breakdown structure is the total of your direct costs, indirect costs and profit. You've already defined your direct and indirect costs in the Cost Breakdown Structure, and the summary of these costs are reflected here.

The Assigned and Unassigned column show which costs are either assigned or not assigned to pay items. Unassigned costs are spread back to pay items based on the distribution logic set in Job Properties Pricing, and the Total column represents a summation of both columns. On the data map, you can see each layer displays with an amount and the percentage of the target price that this amount represents. Let's add profit by entering it directly as a percentage of your target price.

But first, notice the markup percentage where it's currently at. Click in the Target Profit field under Percentage of Target and increase the amount by entering 10%, then press Tab. Notice on the data map, your profit has grown to a 10% margin of your target price. Once changes have been made to the PBS, you should always refresh your summary data by clicking the Refresh Summary Data icon in the bottom right corner.

You may want to mark up your cost at an individual cost category level on either your direct or indirect cost. Double-click on the Direct Cost Markup row to open the Direct Cost Markup record. Let's override the direct cost markup field. Note that you can enter multiple markups using additional rows if necessary.

On the right, you have Subject Cost. These costs come from the direct cost items in the estimate. Notice that a Rate already exists on your cost. This calculated automatically when you entered the 10% margin on the PBS.

Let's assume you wanna make some changes. Enter 15% in the Labor Rate field and 10% for your own Equipment, and then press Tab. Enter 8% for Materials and 2% for Fees. And with your markup defined, click OK to close the record.

Your price breakdown is now adjusted according to your changes. You could follow the same process for updating your indirect cost markup as well by opening the indirect cost markup cost item record. You've now defined job markup, or profit, for your estimate.