How to determine the selling price of a project and create a proposal
A proposal is a detailed document that outlines the project's selling price, including applicable taxes, that yields a PDF document that you can send straight to your customer. You can create multiple proposals per estimate.
- To create a proposal, from the Estimates tab, click the ellipse (3 dots) and choose “New Proposal”.
- Creating a proposal adds four additional data points to an estimate.
- Similar to estimates, all blue fields are editable
- Default markups can be set per cost type (in company settings) to pre-populate these percentages. These defaults can also be overridden manually.
- The pie chart, ledger, and indicators will all also be updated as percentages are added to the project giving you a real-time update as you progress through the project. The chart key also acts as clickable links to scroll to a specific proposal section
How does markup affect your profit calculation
- Markup is the amount that you are adding to your project cost that equates to your selling price.
- Profit represents the difference between your project cost and selling price as a percentage.
Profit = Selling Price - Project Cost
Profit Percentage = (Profit/Selling Price)*100
Example - Your project cost is $10, and you add a 50% markup that brings your selling price to $15. Your profit would be $5 which equals 33% of your selling price.
Create a branded, more detailed proposal for the final PDF version
- To add your company logo, recipient information, the scope of work, and terms and conditions, click on “edit properties”.
- STACK allows you to store multiple logos and business information that you can manage under the “Prepared by” dropdown as well as company settings. TIP: logos can be uploaded as most standard image file types but .PNG is recommended
- Use the Scope of Work or Terms and Conditions dropdowns to fill in your saved templates.
- Click “Save & Close” once you’ve completed all the desired fields.
- Click the “Download Proposal” button to open the PDF presentation options.
- By default, the proposal will show a lump sum amount for the project. You can additionally choose to show subtotals by cost type and/or include all the item detail. You can also include a signature line.
If you need additional assistance, please contact us.