Pricing is everything with a contracting business. It’s what keeps your team paid, your equipment running, and your business growing.
But let’s be honest. Setting profitable pricing isn’t always as easy as it could be. Words like “margin” and “markup” might sound interchangeable, but confusing the two could mean the difference between thriving and just getting by.
That’s where AK DASH comes in. With our Job Cost Calculators and our new product pricing feature for Scopes of Work, we’re making it easier than ever to price your jobs accurately and profitably. You’ll not only gain clarity on your costs but also set yourself up to win the right jobs at the right price. It’s a win-win for your business and your clients.
Not sure how margin and markup differ, or why the mix-up hurts profit. Here is a quick, practical breakdown.
Let’s start with the basics. If you’re like most contractors, you’ve probably heard the terms “margin” and “markup” tossed around. You might even use them interchangeably. But here’s the deal: they’re not the same, and knowing the difference is the key to pricing your work correctly.
Markup: Merriam-Webster defines markup as, “an amount added to the cost price to determine the selling price”. In other words, this is the percentage you add to your costs to determine what your customers pay. It’s a way of covering your expenses while ensuring a profit.
Example: If a job costs you $500 and you apply a 50% markup, you’d charge $750.
Margin: Merriam-Website gives us this definition for margin: “the difference which exists between net sales and the cost of merchandise sold and from which expenses are usually met or profit derived. That is, margin is the percentage of the selling price that’s profit. It’s what you keep after covering all your costs.
Example: Job price $750, cost $500. Profit is $250, which is a 33% margin.
Think of markup as what you add to cover cost and profit, and margin as what remains after you sell the job. Knowing which number you are using prevents both underbids and padded quotes.
You can use this Margin Calculator to see your margin and markup with your pricing: Margin Calculator
Here’s where AK DASH makes your life easier. Our new pricing feature for Scopes of Work lets you break down every job into its key components. You can input:
Once the costs are in, choose your pricing approach. Work from markup, margin, or quantity-based pricing, then let AK DASH push accurate numbers into proposals and invoices. Fewer keystrokes, fewer math slips, prices that reflect the real job.
Picture a parking lot stripe with handicap stencils. Miss the rental on the stencil kit or the extra cleanup pass and your profit disappears. A consistent method forces every cost onto the sheet before you send the quote.
Pricing too high creates a different problem. You lose otherwise good work to tighter bids, or slow your pipeline with quotes that never convert
Break down every aspect of the job into material, labor, subcontractor, and equipment costs. Enter these into the AK DASH pricing tool.
Decide whether you will price from markup, margin, or a mix. Use the tool to test percentages until the target margin shows up on the final price.
For larger scopes, set volume breaks that win the job without giving away profit. AK DASH applies the discount rules and keeps your margins visible.
When pricing is locked, AK DASH pulls it straight into proposals and invoices. Clients see clean, consistent numbers, and you avoid end-of-job surprises.
As you complete jobs, use AK DASH to review how your pricing strategies are working. Did you hit your target margin? Are there costs you can cut? Use these insights to fine-tune your approach over time.
With AK DASH pricing tools, you can quote with confidence. No more spreadsheet gymnastics, no guesswork, just clear costs and profit targets that help you win good jobs and grow.
Start a free trial and see how AK DASH streamlines pricing across your scopes. Replace guessing with a repeatable process and put more of each job into profit.
Sign up for AK DASH now to take your pricing—and your business—to the next level.