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 you categories in the system. Here's a short video that explains the benefits of this and how it works.
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
You can apply your markups in your product Catalog or inside a specific proposal.
Apply your markups within your proposal!
Click here for more details
Click here for more details
Open your event from the main events page and navigate to the workroom.
Select the gear icon at the top right of the page.
Click into the Markup Profile dropdown to access your list of markups. You also have the ability to create a new one from this screen as well!
Editing your markups for a specific line item.
Click here for more details
Click here for more details
Open your proposal
Click on the orders tab at the top of the page
Click the (Arrows) expand button next to a line item
Select recipe and scroll down
Select your markup or create a new one!
Editing your markups in your products.
When you edit a products markup and then add it into a proposal the markup that was selected in the catalog will transfer with the product ensuring this product is always priced correctly.
Click here for more details
Click here for more details
Open your catalog
Locate and click on the product's name that you would like to edit.
Scroll down to the Markup Profile section of the page and you can edit within this section.
4. Before leaving, scroll back up and click the Save button on the top right of the screen.
Need help?
Contact our support team via Chat or by emailing support@curate.co for assistance.