The Worksheet: Calculating Labor into Markup

Understanding Design Pricing with Markup

Let’s start by reviewing how the price of a design is calculated using markup.

Markup Equation: The standard equation is:
cost x markup % + cost = selling price

In Details Flowers Software, the default markup is 300%.

Example:

• Cost: $45

• Markup: 300%

• Calculation: ($45 x 300%) + $45 = $180 (selling price)

Is Labor Included in the Default 300% Markup?

It depends on your desired price points. If you typically use a markup under 400%, we recommend creating a few test events using the default markup to explore this pricing model.

How to Calculate Labor in Details if You're Used to Itemizing It

If you’re used to calculating markup and labor separately, you can still do that in Details, but it’s also possible to incorporate the labor cost into your product markup for a smoother pricing approach.

Here’s how to calculate labor within the markup:

Example:

• Cost: $1.00

• Markup: 300%

• Labor Fee: 35%

Step 1: Calculate your product markup portion:

$1.00 * 300% = $3.00

Step 2: Calculate the labor charge strictly on the markup portion:
$3.00 * 35% = $1.05

Step 3: Add the cost, markup, and labor together to get the total price:

$1.00 (Cost) + $3.00 (Markup)  + $1.05 (Labor) = $5.05

Step 4: To see what percentage markup you’re using in total within Details, you can use the formula:

(Cost * x) + Cost = Total Price

($1.00 * X) + $1.00 = $5.05

In this example, X = 405%

We’ve also created an easy tool that lets you input your numbers to get the desired markup. Feel free to use it for quick calculations!

Math not your cup of tea? Email us at support@detailsflowers.com, and we'll help you out!