HomeTech ADVANTAGE Tip

SET SPECIFIC MARKUP AMOUNTS IN YOUR ESTIMATES

Did you know you have complete control of markups for your estimate in the HomeTech ADVANTAGE program?

HomeTech ADVANTAGE allows you to set the specific markup amount in your estimates. You can set markups individually for specific line items. You can also control markups for the estimate Overhead and the estimate Profit.

Complete Markup Control
Changing markups in different areas of the program affect your estimate. You can set markups individually for the following line item cost categories.

• Labor: The labor cost of a particular line item or task.
• Material: The cost of materials for a particular line item or task.
• SubC: The cost of Subcontractor labor and/or materials for a particular line item or tasks. Many times it is the direct quote from one of your subcontractors.
• Other: The cost of any miscellaneous labor and/or materials for a particular line item or task.

Default Markups
Use the Default Markup to set the markups for all future estimates. Changing the Default Markups will not affect any existing estimates. Set the Default Markups so you do not have to adjust the Estimate Markups for each estimate you create.

To adjust the Default Markups from the Estimate Grid window:

Step 1: Choose the UTILITIES pull-down menu.

Step 2: Choose SETUP.

Step 3: Choose the MARKUPS, OVERHEAD/PROFIT tab.

Step 4: Enter markups in the fields provided.

Step 5: Choose OK to save any changes and exit the ‘Setup’ window.

Estimate Markups
To review or modify Estimate Markups, choose the EDIT pull-down menu from the Estimate Grid (with an estimate open).

Step 1: Choose EDIT CLIENT INFORMATION.

Step 2: Choose the PROJECT INFORMATION tab.

Step 3: Enter markups in the fields provided for Material, Labor, SubC, Other, Overhead, and Profit.

Step 4: Choose the CLIENT INFORMATION tab, and choose OK to save any changes.

Notes:

• The markups above apply to the entire current, open estimate.
• Likewise, these markups apply to the estimate phases and the estimate line items.
• If you change an Estimate Markup to be different from the Default Markup, the Estimate Markup will have dominance.
• If you want to change markups for the current, open estimate, and you have changed markups on individual line items in your estimate, you need to choose to either (1) keep the individual Line Item Markups, or (2) have the Line Item Markups replaced with the Estimate Markups entered. Estimate markups are the markups to which any added phase will display (by default).
• This is the only area in the program where you can set the Overhead and Profit for an open estimate. Overhead and Profit are calculated from total estimate price. Overhead and Profit cannot be set for individual phases or line items.
  

Phase Markups
Phase markups apply to a selected phase and the line items within that phase. Different phases can have different markups. These markups can be different from the Estimate Markups and/or individual line item markups. When adding a phase to your estimate, the Phase Markups in this screen will (by default) be the same as your Estimate Markups.

To access the “Phase Maintenance” window from the Estimate Grid with an estimate, access the EDIT pull-down menu and choose EDIT PHASE.

Step 1: From the “Phase Maintenance” window, SELECT THE PHASE you want to review or modify markups.

Step 2: ENTER MARKUPS for Labor, Material, SubC and Other for the selected phase.

Step 3: Choose SAVE AND EXIT to save any changes.

Line Item Markups
The “Revise A Cost Line” window is a convenient place to edit estimate line items because you have all the line item information available in one window. Alternately, you could edit the Markup cells for a particular line item in the Estimate Grid window.

Step 1: Select (highlight) the line item in the Estimate Grid that you want to edit.

Step 2: Choose the EDIT pull-down menu.

Step 3: Choose EDIT ITEM. This will display the “Revise A Cost Line” window.

Step 4: Edit the markups in the “Revise A Cost Line” window.

Step 5: Choose OK to save any changes and exit the “Revise A Cost Line” window.

Note: If you change a Line Item Markup to be different from the Phase Markups, Estimate Markups, or the Default Markups, the Phase Markups have dominance.

ADDITIONAL TIPS

Markups Apply To Estimate Line Items Only
Markups apply only to line items added to your estimate. All line items in the Costbook window will display cost figures (even if the ‘Show Prices’ feature is checked in the Estimate Grid).

Know Your Project and Adjust Markups Accordingly
By identifying any difficult areas of a project, you can adjust markups in your estimate accordingly to account for these factors. First, read the individual line item specifications to know exactly what is included for each line item you use in your estimate. Second, adjust markup accordingly based on the following:

• Type of work being performed: remodeling, new construction or handyman
• Work performed “In-House” or “Out-Of-House”
• Judgment factors in the project: project location, site access, difficult homeowner, difficult or complex work, installation of specialty or high-end products, etc.
  

Suggested Markups
HomeTech Information Systems, Inc. recommends minimum markups as follows depending on the type of work being performed:

Markups and Multipliers
When a line item is added to your estimate, any applicable markups will be applied to that line item to generate a selling price for that line item. Review the example below to understand how the program calculates a selling price from line item costs and the entered markup.

Markup Entered	Multiplier	Example
50%	1.50	($1.00 cost) x (1.50) = $1.50 price
67%	1.67	($1.00 cost) x (1.67) = $1.67 price
75%	1.75	($1.00 cost) x (1.75) = $1.75 price
100%	2.00	($1.00 cost) x (2.00) = $2.00 price
150%	2.50	($1.00 cost) x (2.50) = $2.50 price
200%	3.00	($1.00 cost) x (3.00) = $3.00 price