Cost Plus Markup pricing is used when you want to enter a cost and a markup to calculate a product price instead of having a fixed product price. This is useful in cases where you may be buying products and reselling them at a markup.
Cost Plus Markup pricing can be applied to products of any recurrence type.
When a product with cost plus markup pricing is added to a quote table, the default markup is 0. You can choose to add either a fixed dollar markup or a % markup.
If you use fixed markup, the price is simply the cost plus the fixed markup. If you use % markup, the price is the cost * (1+markup percentage/100).
So, in the case below, the cost is $2000 and the markup is 50%, so the price is $2000*(1+50/100) = $3000.
If you want to have a default markup applied to every cost plus product on the quote table, then you can toggle Default Markup on in the Quote Settings. This can be either in a template or a proposal.
Turning the Default Markup toggle on enables an editable setting at the top of the quote editor for the default either in terms of fixed or percentage.
This markup is applied to all products on the quote and individual product markups are not editable when using a default markup.
Note that Volume Pricing cannot be applied to Cost Plus Markup products. Any volume pricing that is entered on the product record will be ignored if the product is Cost Plus Markup.