About Markup and Markdown Methods
They allow you to markup from Direct Cost or down from List Price to create a Retail Price for your items. They are just one of the many ways you can use the software to help you calculate a Retail Price for items.
How They Work In Practice
When you create an item, you enter an amount in the Estimate Cost field. You may then select a Markup/Down Method. When you do, the Suggested Retail Price field is populated with an amount based on that calculation. If you decide that you want to use that amount as your default Retail Price, you can click the button on the right of the Suggested Retail Price field or enter any amount you wish. That’s how the Retail Price field is populated. Side Note: Once an item has an amount in the Average Cost field, it will use that amount, instead of the Estimated Cost. Either way, the Retail Price field is not populated automatically.
When you create estimates and invoices, the default Retail Price from the item will be used. You can change the Repair Price by selecting a different Markup/Down Method or by entering a new Repair Price. You can change the Markup/Down Method for certain line items individually or all at once.
If you added a default Markup/Down Method to that customer (the main Add/Edit Customer form), that method will now be used when you create an estimate or invoice. When the estimate or invoice is created, the software selects that method in the Markup/Down Method selection list (middle left side of the form). You are basically telling the software that they have different pricing than that of the default pricing.
When you leave the Customer’s Markup Method empty (no selection), the items default Retail Price is always used when creating estimates and invoices.
Most of the companies Aptora has worked with, leave the customer’s default Markup/Down Method blank. They price their items using a small number of markup methods and that’s what most every customer pays. Air filters and certain (loss-leader) things include a smaller markup and that usually applies to everyone. If they have a customer that gets special pricing, they use discounts most of the time. That way the customer is reminded of the special discounted pricing they enjoy. Otherwise, they use a different Markup/Down Method when needed.