What you add on top of your cost to reach your price, given as a percentage of the cost. Cost a job at $100, add 50 per cent markup, and the price is $150. Markup is easy to apply because you start from a number you already know, which is why nearly everyone prices this way — and why nearly everyone then reads the result as a margin, which it is not.
Related terms
- MarginWhat is left of the price once the cost of doing the work is taken out, given as a percentage of the price.
- OverheadWhat the business costs to run whether or not you work today — insurance, the van payment, the phone, the accountant, the software, the storage unit.
- Unit priceA price for one unit of work — a square foot of floor, a linear foot of cabinet, a fixture, a visit — which you multiply by the quantity.
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