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Quotation Pricing Calculations - The Basics
Quotation Pricing Calculations - The Basics

The basic pricing calculations in Zigaflow explained: Mark-up, Margin, Discount and Supplier Discount

Updated over a week ago

Zigaflow provides for pricing using mark-up, margin, discount and supplier discount. It also provides additional tools for pricing which are not covered in this article.

Showing the Columns

Zigaflow allows users with "Admin" privileges to show or hide columns on the items grid. This is controlled by clicking on the "Screen Options" button:

Prices

-Sale Prices

When an item is added from the items list, this price on the item is used:

Volume prices can also be used but are not covered in this article.

-List Price

The RRP/MRP/Retail price of an item. This is populated by the item's price when added.

-Agreed Price/Sales Price

The final price on the quote. When an item is added from the items list it is set to the item's price. In addition to being over-typed on the quotation, it can be changed by changes to the:

  • Mark-up

  • Margin

  • Discount

-Cost Prices

These are taken from the item's cost:


Volume cost can also be used but are not covered in this article.

-List Cost

The supplier's advertised price. When an item is added from the items list it uses the above cost field.

-Agreed Cost

When added from the the items list it will use the above cost field. However, if it has a main supplier set and they have a discount, this will be applied to the agreed cost. In addition to being over-typed on the quotation, it can be changed by changes to the:

  • Supplier Discount

Mark-up

This takes the cost and applies the entered percentage to give the Sales Price.

Sale/Agreed Price = Agreed Cost x (1+Mark-up)

For example, if the mark-up is set to 50% and the agreed cost is £100, the sales price is then set to £150.

£100= £100 x (1+0.5)

Mark-up requires the agreed cost to be more than zero.

Margin

This takes the cost and applies the entered percentage to give the Sales Price.

Sales Price = Agreed Cost / (1-Margin)

For example, if the Margin is 50% (0.5 in decimal) and the agreed cost is £100, the sales price is set to £200.

Margin requires the agreed cost to be more than zero.

Discount

This takes the List Price and applies a discount to give the Agreed/Sale Price.

Sales Price = List Price - Discount

For example, if the list price is £100 and the discount is 25%, the sale price is £75.

Discount requires the List Price to be more than zero. Costs have no bearing on this calculation.

Supplier Discount

This takes the list cost and applies a discount resulting in the agreed cost.

Agreed Cost = List Cost - Supplier Discount

For example, if the list cost is £100 and the discount is 25%, the agreed cost is £75.

Supplier Discount requires the List Cost to be more than zero.

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