In Materio, you can estimate each scope of work item with specific costs, tax, and markup on four components: Unit cost (material), Shipping, Delivery, and Labor. Budgeting for all aspects of an item ensures your team is set up for success, your client knows your budget is accurate, and it provides a solid foundation of what is needed in a project.
You can watch this video to learn more and read below the cost components in Materio.
In Materio, estimating an item involves several optional components:
Unit Price: This is the cost to purchase or acquire the item. For example, a pendant may cost your firm $500.
Vendor Tax: This applies if you buy the item retail. This tax is usually set up when you define your scope of work and indicates that most purchases already have sales tax collected.
Markup: This is the markup on your product and can range from 0% to 100%. The rate depends on your firm's policy, what vendor you're purchasing from, and how you charge your clients.
Client Tax or Sales Tax: This sales tax will be charged to your client in the invoicing phase. This is visible at the bottom of the project under the grand total area.
When estimating, Materio keeps a history of the prices you've set for specific items on other projects and will present those to you as you estimate.
Additional cost components that you can add include:
Shipping: This is the cost of shipping this good. You can also apply tax, markup, and client tax to shipping costs.
Delivery: Costs associated with delivery services, like a white glove delivery, are included in this cost component.
Labor: This is for third-party labor, like an electrician or a handyman. Please remember that labor is estimated as a lump sum, not per unit.
You can set default rates to charge a specific markup on shipping across all your items.
Estimating or budgeting items in Materio is particularly helpful so that you can plan your profits ahead of time and accurately budget room costs for your client.
When you add products from your library to the items on the project, Materio will carry over default markups and taxes. This ensures your team doesn't accidentally include the wrong or no markup.
Costs like shipping, delivery, and labor are carried over from the library. For instance, if I have an item from Visual Comfort in my library and clipped it with a $50 shipping cost, it will keep that base cost. The markups and taxes are what will carry over from the estimate. These estimates ensure accuracy when junior team members add products to the project.
Estimates/budgets in your project's scope of work impact the financial aspect of a project. On the 'Finances' tab, you can see an itemized breakdown of what is estimated, allowing for effective budget planning and tracking of actual costs as you order products and invoice clients.
Remember, estimates are essential for knowing what each item will cost you and how you can profit from your projects. Happy budgeting!
Have questions? Chat with us live during business hours or email us at hello@materio.co