Costs & markups: labor, overhead, margin, tax, deposit

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Costs & markups: labor, overhead, margin, tax, deposit

Set your labor rate, overhead, markups or target margin, minimum job, sales tax, deposit, rounding and quote expiry.

This is where cost becomes price. Open Settings, group Prices and quotes, tab Costs & markups. The menu item Pricing opens it too.

Warning: The starting values shipped in VisionScaper (labor rate, overhead, markups, margin, tax rate, deposit, minimum job, rounding and valid days) are placeholders, not approved. Enter your own. The sales tax hint says “Your state’s rate — e.g. CT 6.35%. Check with your accountant.”

Card: Your costs

Field Meaning
Labor cost per hour ($) Burdened: wage plus payroll taxes, workers’ comp and insurance, per crew member hour
Overhead (%) Trucks, office and insurance, added on top of direct cost to get true cost
Minimum job ($) Quotes under this are raised to it
Mobilization per job ($) A flat charge added to each job

Card: Your price to the customer

First choose Pricing method:

  • Markup by category: a percent on top of each cost type. Fields: Materials markup %, Labor markup %, Equipment markup %, Subcontractors markup %, Disposal markup %, Delivery markup %, Other markup %.
  • Target gross margin: every cost is priced so your gross profit equals the target percent of the price. Field: Target gross margin (%). Margin mode applies overhead and then the margin.

A hint explains that a 50% markup equals a 33% margin.

Then the rest of the card:

Field Meaning
Sales tax (%) Your tax rate
Tax applies to Whole job, Materials only, or No sales tax
Deposit when signed (%) The share of the total due at signing
Round section prices up to ($) Each section price rounds up to the next multiple of this, unless you typed your own price
Quotes are good for (days) Sets the default “Price good until” date on new quotes
On proposals show Price for each section or Total only

Steps

  1. Open Costs & markups.
  2. Enter your labor rate and overhead.
  3. Pick Markup by category or Target gross margin, and fill the percents.
  4. Enter tax, what it applies to, and the deposit.
  5. Set rounding, quote days and what proposals show.
  6. Tap Save costs & markups.

How the numbers combine

Per section: cost lines add up (labor lines use your labor rate unless you set a rate on the line). Price = each cost plus its markup (or cost with overhead divided by one minus the margin). Section prices round up. Add mobilization, subtract any discount, raise to the minimum job. Tax is a percent of the taxable part. The deposit is a percent of the total with tax.

Quotes show a red gross-profit figure when margin is under 25%.

Expiry

The Price good until date on the proposal defaults to today plus your valid days. After that date the customer can no longer sign: the signing page says “This proposal has expired or was withdrawn.” The quote shows as Expired, and the main button becomes Send it again.

Tips

  • Pick one method and stay with it.
  • Ask your accountant about tax and the deposit.
  • You can change the price of any section by hand on a quote.

If something goes wrong

  • Prices too low. Check the labor rate and the method.
  • Tax shows 0. Tax may be set to No sales tax.

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