Setting Markup and Unit Price on a Quote in EDGEBIC

EDGEBIC derives a quote's unit price from cost and markup, but it never overwrites a price you typed, so the pricing stays automatic where you want it and manual where you need it. In EDGEBIC by User Solutions, markup multiplies the effective cost by one plus the percentage, divides by the quantity, and rounds to two decimals, with a 25 percent default. Auto-markup fills the price only when it is zero, which protects a negotiated number from being clobbered by a later simulation. Understanding this behavior lets you run a consistent pricing policy with room to adjust, and re-derive deliberately when costs move.

The markup formula

Markup turns cost into a unit price with a single calculation:

unit price = round( effective cost x (1 + markup% / 100) / quantity , 2 )

Effective cost is the simulation's labor plus material, unless a manual override replaces it. The default markup is 25 percent, and it is stored on the quote so it carries to the converted order for margin reporting later.

A worked instance: a 200-unit job that simulates to $9,230 of effective cost, at the default 25 percent markup, derives $9,230 times 1.25, divided by 200, which is $57.69 per unit. That is the price the markup produces. It is a floor and a starting point, not a ceiling. Change the quantity and that arithmetic moves in a way that is rarely proportional, which is the subject of what happens to a quoted price when the quantity changes.

Auto-markup fills only a zero price

The behavior that makes markup safe to rely on is this: auto-markup fills the unit price only when it is currently zero. When you create a quote and leave the price at zero, the first simulation derives it from cost and markup. But the moment you type a price by hand, later simulations never overwrite it.

That protection matters because a unit price is often a negotiated number. A salesperson agrees $85 with a customer, and no re-simulation, cost change, or routing edit should silently move it. EDGEBIC treats a typed price as intentional and leaves it alone, updating only the cost and the resulting margin around it.

Re-deriving a price on purpose

Because a typed price is protected, you sometimes need to re-derive it deliberately, for instance after a routing change moves the cost. There are two ways:

• Clear the price to zero and re-simulate. With the price back at zero, auto-markup fires again and derives a fresh price from the new cost.
• Apply Markup to Unit Price. This action recomputes the price from the current cost and markup without waiting for a simulation, overwriting the existing price on demand.

Both are explicit acts, which is the point. The system will not repriced behind your back, but it makes re-pricing one click away when you want it.

Markup and margin are not the same number

A common trap is treating markup and margin as interchangeable. They are two views of the same money, and they are not equal.

Markup is a percentage added to cost. Margin is profit as a percentage of price. Because the price is larger than the cost, a given markup always yields a smaller margin. A 25 percent markup on a $9,230 cost gives a $11,537.50 price, a $2,307.50 profit, and a margin of 20 percent, not 25. EDGEBIC derives the price from markup and then reports the margin that price actually produces, so you set the input you control (markup) and read the outcome that matters to the business (margin). The margin's color coding then tells you whether the price clears policy; see reading the estimated margin and profit.

Running a markup as a pricing policy

The behavior above supports a clean pricing workflow. Set the markup to your house rate and leave the price at zero when you first simulate, so every quote starts from a consistent, cost-based floor. Let sales raise the unit price by hand for the customer, and that number sticks. If a cost change later thins the margin against the typed price, the margin cell shows it immediately, and a quick Apply Markup restores the target if you decide to reprice.

The result is a consistent starting point with room to negotiate up, and no risk of the system overwriting a committed number. For the underlying cost that markup is applied to (labor from work hours times rate, material from routing steps), see pricing a quote from the schedule. Getting that cost right is what makes the markup mean anything, because a markup on a cost with a missing work-center rate still derives a price that loses money.

A note on the manual override

Markup applies to the effective cost, and the effective cost can be a manual override rather than the rolled-up labor and material. When you set an override for costs the schedule cannot see (tooling wear, freight, an expected scrap allowance), markup derives the price from that override. The calculated labor and material split stays stored underneath for later variance work, so the override changes the pricing basis without hiding the breakdown. This lets you price a job with real extra cost honestly, then still learn from it after the fact.

The takeaway

Setting markup and unit price in EDGEBIC is a balance of automatic and manual by design. Markup derives a consistent floor price from effective cost, defaulting to 25 percent, but auto-markup only fills a zero price, so a number you typed is never overwritten. Re-derive deliberately by clearing the price or using Apply Markup, remember that markup and margin are different views of the same money, and lean on the override for costs no schedule can see. The pricing then stays consistent where you want a policy and negotiable where you need one. Read the resulting margin in reading the estimated margin and profit, walk the full workflow in the EDGEBIC quoting guide, and see the platform in full on the EDGEBIC overview.