A price margin is how much you add on top of what an item costs you. You can add a margin to services, materials and charges, in Favorites or in an estimate. Duranta then shows your customer the price with the margin included.
Add a margin
1. Open the service, material or charge.
2. Next to Price margin, select + Margin.
3. Choose the margin type and enter the amount.
Under the margin, Duranta shows the price your customer pays, the markup in dollars and the gross margin.
The four margin types
Each example starts from a cost of $40 and ends at the same customer price of $50:
Margin type | What you enter | Example | Customer pays |
Percent more | A percentage added to your cost | 25% | $40 + 25% = $50 |
Dollars more | A dollar amount added to your cost | $10 | $40 + $10 = $50 |
Gross margin | The share of the selling price you keep | 20% | $40 ÷ (1 − 20%) = $50 |
Customer price | The price your customer pays | $50 | $50 |
Select None to remove the margin.
Markup or gross margin?
They're easy to mix up:
Markup is the extra amount compared with your cost. In the example, $10 is 25% of the $40 cost.
Gross margin is the share of the selling price you keep. In the example, $10 is 20% of the $50 price.
So a 25% markup and a 20% gross margin give the same price. Use Gross margin if you think in profit on the sale, and Percent more if you think in markup on cost.
💡 A margin in Favorites is copied into each new estimate. You can change it in the estimate without changing the item saved in Favorites.
💡 Pro tip: For more on pricing, read How not to misprice jobs on our blog.