Most underpriced jobs come from one mistake: using a markup number when you meant a margin number.
The difference
Markup is profit divided by cost. Margin is profit divided by price. A job that costs $1,000 and sells for $1,500 has a 50% markup but only a 33.3% margin.
A worked example
- Materials $2,400, labor $1,800, overhead share $600. Cost: $4,800.
- You want a 35% margin, so the price is cost ÷ (1 − 0.35) = $7,385.
- That is a 53.8% markup on cost. A flat 35% markup would have priced it at $6,480 and left you with a 26% margin.
Do it once, not every quote
Save your markups on each service so every quote uses them. Try the free markup and margin calculator, or see how quotes work in VisionScaper.