Lets observe the quotation Dashboard and discover some logic behind calculations.
Our sample is a trip quotation for 6 travelers.
We are on: OPERATION
Quotation
1. General Information
2. Cost
3. Margin Prices
4. Marketing
5. Files
There are 5 ways of adding markup to the trip costs.
The first way is to add the profit per each item. The profit can be applied in percentage or as a fixed amount.
Per Service types of prices will always be divided by number of pax (price per unit / pax +free)
If the Transport cost is 120 EUR (a) , this service will cost to each participant 20 USD (b).
a.
b. (We are on Margin Prices)
If I want to add 10% of a profit to Per Service cost (a), the system will add the profit, multiplied by quantity to the price that was divided by number of pax (Price per unit/ number of pax) + (quantity*profit per unit).
a.
Considering this, each participant will be paying 22 EUR, and the total gross will be 132 EUR:
Per Product type of pricing (a) will always be multiplied by number of pax (b).
(Please note - the quotation quantity for Per Product items will always appear as 1, however the quantity of pax will be considered and calculated accordingly to the quotation general information)
a.
b.
If I add a profit of 10 EUR to Per Person cost (a), the price per unit will be multiplied by Number of pax and the amount of profit (Price per unit * Number of pax * Profit per unit)
a.
b. And cost of this service for each participant will raise by 10 EUR:
The same way calculations for Per Product costs will be made with added profit by percentage.
The second way of adding markup - is general markup.
We are on:
Quotation
1. General Information
2. Cost
3. Margin Prices
4. Marketing
5. Files
When I applied a 30% markup for a 100 USD trip for 2 pax, the final price went up to 130 USD, and the overall markup was applied above gross price. This way I added a 30% markup to every service category.
As an alternative, there is a third way of adding profit - to add a markup per service category. In this case, essentially, the profit will be added to the relevant category.
Both general and per category profits are added to the gross price, and cannot be applied simultaneously - you can either choose to have general or per category profit.
Quotation management Section has 2 other options of adding markup in percentage as a Risk Management or as VAT/Agencies.
Both options will be applied to a gross price.
When I apply markup choosing title options of Risk management (Conversion differences, Inflation, Clearing fee, Other) the amount of profit will be multiplied by the cost. (Gross PP * Risk management %)
When using VAT/Agency (Agent/Calculate on gross, VAT, VAT/Margin prices)
The VAT will be added upon gross price.
The gross price will be divided by Agent/Calculate on gross percentage.
VAT/Margin prices will be applied above the amount of profit.
Comments