Markup Sets

A library of different Markup Sets you can use in your Estimates and/or Cost Book.
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The Most Common Methods For Marking Up & Pricing Projects

Jim Huston of J.R. Huston Enterprises Inc and author of the excellent book How to Price Landscape & Irrigation Projects wrote about The Most Common Methods for Pricing Jobs. He described them as:

  • Dual Overhead Recovery System (DORS)
  • Factoring method
  • Hindsight markup factor
  • Market-driven unit pricing (MDUP)
  • Multiple Overhead Recovery System (MORS)
  • Multiplier method
  • Overhead and Profit per Hour (OPPH)
  • Single Overhead Recovery System (SORS)

The 360Difference Markup Sets module is deigned to accommodate any of those methods.

Dual Overhead Recovery System (DORS), Multiple Overhead Recovery System (MORS), and Single Overhead Recovery System (SORS)

The Gross Profit Margin or the Single G&A Overhead Recovery System Method SORS sadly is what so many building and remodeling contractors brought up in the era of Walter W. Stoeppelwerth at Remodleing Magazine and then Michael Stone’s Markup & Profit: A Contractor’s Guide this is the industry standard method for markup and pricing and never recongnize it flaws and problems.

MEANWHILE in the paint, landscaping, plumbing, HVAC, and other specialty trades and subcontractor industry people like J.R Huston (OPPH), Irv Chasen (PROOF), Ellen Rohr, and Frank Blau were championing a different model for markup which we know more commonly call a Capacity Based (or Activity Based) Markup or OPPH (for Overhead and Profit Per Hour).

(see The History of Markup Methodologies in the Building & Remodeling Industries – Paradigm Projects)

One of resons I originally created the 360Difference model back int eh 1990s was so that I would have an estimating  program that would allow me to use an Acticity/Capacity Based Markup model.

All this can get confusing at times which is why I offer 6 hour ondemend traing program on this: Seminar: Activity Based Pricing Seminar for $750 where I will teach all the staffers in your company where all these Markup Methods succeed and fail.

Because I don’t recommend them (the logic and math don’t make sense) I won’t discuss the Factoring Method, Hindsight Makeup Factors, Market-Driven Unit Pricing, and Multiplier Method here.

What Is The 360Difference Markup Module

Markup Sets is your library of different Markup Sets. The idea is your company may keep different Markup Sets on file for different Clients, different Projects or different Unit Cost items in your 360 Difference Cost & Price Book

Unlike some estimating programs the user has complete control over the calculation of markup and the way the spread is allocated individually towards labor, materials, and external (subcontracted costs).

It also allows you to create and store additional Markup Sets so that if you happen to have a preferred long term client you wish to provide a discount for you can create a unique Markup Set for them in much the same way that you could also create a unique higher Markup for a particularly difficult client.

This also allows you to experiment with bids produced a different Markup rates while still affording you the convenience of being able to “roll back” to your old markup structure if you need to.

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