Mike_RNC

dont mess up the formulas or you'll be sorry.

Attached Files

Estimating Calculator.xls (28.5 KB, 1088 views)

LaurieC

Thanks Mike,

I have one, but yours is better.

BKFranks

I know this thread is a few months old, but I had to post a response after taking a look at the original file that was being shared. The markup method is incorrect and would cause anyone using it to lose money. Please see the attachment.

Attached Files

Markup_Method.xls (14.5 KB, 291 views)

__________________

CBCron

Gentlemen,

The two of you are defining the term differently.

Mike's treatment of the term is the commonly accepted definition. Markup being the number (plus one) used against cost to come up with price.

BKFranks' method is really margin. Margin is the gross profit cut of the price.

Each of you is calculating your approach correctly for what you mean.

FYI, BKFranks' 28% margin actually equates to a 1.38 markup.

Here's a philosophical question for Mike. Why would you charge $832,000 if your client would pay $902,778?

Know what the work costs. Figure out what the client is willing to pay. Decided whether the gross profit is worth your time and trouble.

__________________
Just hanging around.