When setting up product pricing in Floorzap, it's important to understand the difference between Margin and Markup. These two methods use different calculations to determine your selling price, and choosing the right one ensures your pricing reflects your business goals.
Margin vs. Markup: What's the Difference?
Floorzap allows you to choose either Margin or Markup as your preferred pricing method. Only one can be active at a time.
Markup adds a percentage on top of your product's cost. Use this when you want to charge a set amount above what you paid.
Example: A 50% markup on a $100 cost → $150 selling price.
Margin represents the percentage of the final selling price that is profit. Use this when you want to keep a specific share of every sale.
Example: A 50% margin on a $100 selling price → $50 profit.
Note: 100% Markup = 50% Margin. A 100% margin is mathematically impossible unless a product has a $0 cost.
How Margin Affects Product Pricing
When Margin is enabled, Floorzap calculates the selling price so that the chosen percentage represents the profit portion of the final price. Very high margin percentages result in very large selling prices — this is expected behavior.
Example (Product Cost = $204):
Desired Margin | Resulting Sale Price | Explanation |
50% | $408 | Cost makes up half, profit makes up half. |
99.9% | $204,000 | Cost represents only 0.1% of the final price. |
Where to Set Margin or Markup
Go to Settings → System Settings → Initial Settings
Enable or disable Calculate Sales Percentage Based on Margin
When enabled → your percentage is treated as Margin
When disabled → your percentage is treated as Markup
Troubleshooting
Issue: Prices are too high
Selling prices that seem unrealistically high (e.g., $20,000+ for a standard product) usually mean a margin was entered when a markup was intended — or a very high margin percentage was used.
Signs: Selling prices far exceed expected values. A 100% entry produces an extreme price instead of doubling cost.
Fix: Check whether Calculate Sales Percentage Based on Margin is enabled, then confirm whether Margin or Markup was intended. If you want to double the cost of a $1,594 product, enter 50% margin (not 100%) to get a $3,188 selling price.
Issue: Product is showing cost instead of selling price
If a product pulls an unexpectedly low price into an estimate or invoice — specifically matching the product cost — this is likely caused by a legacy markup cap.
Note: This only affects products created before a system update that removed the 99.99% markup cap. New products are not affected.
Signs: Price on estimate matches product cost. Markup percentage stored as 99.99% despite a higher intended value.
Field | Expected | Actual |
Product Cost | $15.50 | $15.50 |
Selling Price | $50.00 | $15.50 pulled into estimate |
Correct Markup | 222.58% | 99.99% stored |
Fix:
Open the affected product profile
Review the Product Cost and Selling Price
Correct the markup percentage to the intended value
Click Save
To catch other affected products, review older inventory records and flag any showing a 99.99% markup value.
Summary
Choosing the correct method — Margin or Markup — ensures your product pricing behaves as expected. If prices look off, start by checking your system setting and confirming which method your business intends to use. Contact Floorzap Support if you need help reviewing your configuration.