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Article Understanding Labor and Parts Markup

Understanding Labor and Parts Markup

Labor and parts markup is a pricing configuration that automatically applies a percentage increase to the base cost of materials and hourly labor rates when generating quotes and invoices. This article describes how markup is calculated, where it is configured, and how it appears in customer-facing documents.

What Is Markup?

Markup is the amount added to your cost to arrive at a customer price. FieldPulse supports separate markup percentages for:

  • Parts and materials — calculated per line item based on unit cost
  • Labor — calculated per hour based on technician hourly rates

Markup is distinct from margin. Markup is calculated as a percentage of cost; margin is calculated as a percentage of price. FieldPulse uses markup by default.

Configuring Markup Settings

Markup percentages are configured at the account level.

  1. Navigate to Settings > Work Orders > Pricing
  2. Locate the Markup section
  3. Enter a percentage value for Parts Markup and Labor Markup
  4. Select Save Changes

Changes apply to all new work orders. Existing work orders retain the markup values that were in effect at time of creation.

How Markup Is Calculated

When a technician adds a part to a work order:

Customer Price = Unit Cost × (1 + Markup Percentage)

Example: A part with a unit cost of $50.00 and a 20% markup generates a customer price of $60.00.

Labor markup is calculated similarly against the hourly rate assigned to the technician or service type.

Viewing Markup in Work Orders

The Work Order Detail page displays:

  • Cost — your internal cost (visible to users with appropriate permissions)
  • Markup — the calculated markup amount
  • Price — the customer-facing total

Customer-facing PDFs and emails display only the final price unless explicitly configured otherwise in Settings > Notifications > Document Templates.

Overriding Markup on Individual Items

Users with the Edit Pricing permission may override automatic markup at the line-item level:

  1. Open the work order
  2. Select the line item
  3. Select the Override Markup checkbox
  4. Enter a custom percentage or fixed price
  5. Select Save

Overridden items are flagged in reports for audit purposes.

Markup Reporting

The Work Order Summary Report and Technician Performance Reports include columns for cost, markup, and price. Use these reports to analyze profitability by job, technician, or time period.

The CSV Export function includes raw markup data for external analysis.

Related Articles

  • Creating and Assigning a Work Order
  • Using Work Order Templates
  • Tracking Parts Used on a Job
  • Overview of FieldPulse Reports