Markup percent is the percentage added to a job's rolled-up cost to derive its selling price. With a total cost of 100,000 dollars and a 25 percent markup, the price basis becomes 125,000 dollars, and dividing by the order quantity gives the unit price. It is the lever that turns a cost estimate into a customer-facing quote.
EDGEBIC by User Solutions applies a markup percent, defaulting to 25 percent, when a quote's simulation produces a cost. This article defines the term and shows how it sets the price.
How It Works
Pricing a quote happens in two stages. First the cost engine rolls up the job's cost: scheduled hours times each work center's rate for labor, plus material. Then the markup converts that cost into a price. The unit price is the effective total cost multiplied by one plus the markup fraction, divided by the order quantity.
The markup lives on the quote, defaulting to 25 percent, and you can change it per quote. A rush order might carry a higher markup; a strategic account might carry a lower one. Because the markup is separate from the cost rollup, you adjust the price without touching the underlying cost figures, which keeps the cost side honest for later comparison against actuals.
The auto-markup is a one-time fill. It sets the unit price only while the price is still zero, so once you type or agree a price, a later simulation will not overwrite it. If you ever want to re-derive the price from a new cost, you reset the price and let the markup recalculate.
A Concrete Example
Take a quote for 200 units. The cost rollup produces 100,000 dollars of labor and 2,400 dollars of material, a total of 102,400 dollars. The markup is the default 25 percent. The engine computes 102,400 times 1.25, which is 128,000 dollars, then divides by 200 units to give a unit price of 640 dollars.
Now consider a rush order for 50 castings costing 19,400 dollars after a manual adjustment for tooling wear. The planner sets a 30 percent markup for the rush. The unit price is 19,400 times 1.30, divided by 50, which is about 504 dollars per unit. The higher markup captured the urgency without inflating the cost estimate, so the cost breakdown still reflects reality for variance reporting.
How EDGEBIC Uses It
The markup lives in the quote simulation flow. When you run a what-if quote, the engine schedules the job, rolls up cost, and if the unit price is still zero, applies the markup to derive it. You are free to override the price afterward, and the system will not overwrite your number on subsequent runs.
For cases where the price is fixed in advance, a manual cost override replaces the rolled-up cost as the pricing basis while preserving the detailed labor and material breakdown underneath. That keeps two things separate and both correct: the price the customer agreed, and the true cost story that later variance reporting compares against actuals.
Markup turns cost into price, so it sits directly on top of the work center rate and the cost rollup that produce the cost. The manufacturing glossary covers the related pricing terms, and the quote scenario shows how the same markup prices competing what-if routings for the same customer.
Expert Q&A: Deep Dive
Q: I want to quote a rush job at a higher price but keep my normal costing. How do I do that cleanly?
A: Raise the markup percent on that one quote rather than inflating the cost. The cost rollup should still reflect the true labor and material, because that is what feeds variance reporting later when actuals come in. The markup is the pricing lever: bump it from the default 25 percent to, say, 30 percent for the rush, and the unit price recalculates from the honest cost. In a worked case a 19,400 dollar cost at a 30 percent rush markup priced out at about 504 dollars per unit. Keep cost truthful, move the markup, and your quote-versus-actual comparison stays meaningful.
Q: The system priced my quote automatically, but I have a fixed price the customer already agreed. Can I lock it in?
A: Yes, through a manual cost override, and the automatic markup will step aside. The auto-markup only fills the unit price when the price is still zero, so once you set a price it will not be overwritten on the next simulation run. If you want the price to derive from a fixed number instead of the rolled-up cost, set a manual cost override, which replaces the calculated cost as the pricing basis while still keeping the detailed labor and material breakdown for later variance comparison. That way the quoted price matches what the customer agreed, and you still have the true cost story underneath it.
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