Margin vs markup in electrical quotes
Two installers say “I want 20%” and land on different sale prices. One means margin; the other markup. CableFlow keeps purchase cost and sale price separate — this guide locks the difference with the classic example: cost €100 → sale €125.
Plain definitions
Markup is profit as a percentage of cost. Cost €100 with 25% markup → sale = 100 × (1 + 0.25) = €125.
Margin is profit as a percentage of sale price. For 20% margin on €100 cost, sale = 100 / (1 − 0.20) = €125.
The same sale (€125) is 25% markup or 20% margin. Saying “20%” without naming the method is ambiguous — and it changes real profitability on an electrical installation quote.
Formulas (same as the app)
- Sale from margin:
sale = cost / (1 − margin%/100) - Sale from markup:
sale = cost × (1 + markup%/100) - Observed margin:
(sale − cost) / sale × 100 - Observed markup:
(sale − cost) / cost × 100
At cost €100 and sale €125: profit €25, margin 20%, markup 25%. At the same nominal percentage, margin implies a higher sale than markup (20% margin ≠ 20% markup).
Why it matters
If cable price rises and you “keep 20%” without clarifying the method, you may squeeze real margin or overcharge unintentionally. Software for electricians that shows cost, sale, margin %, and markup % side by side prevents that mix-up — CableFlow’s internal profitability view does this.
The client print view does not show internal costs.
Example on a cable line
200 m at €1.20/m purchase → line cost €240. With 20% margin: sale = 240 / 0.8 = €300. With 20% markup: sale = 240 × 1.2 = €288. A €12 gap on one line adds up on larger jobs.
The public margin/markup calculator reuses the same pricing functions, with no login and no data stored.
Habits
- Agree whether commercial targets are margin or markup.
- Keep purchase and sale separate in the catalog.
- Review internal profitability before printing; print the client view only.
- Use consistent percentage methods across materials and labour.
In the CableFlow flow
After cable metres per circuit, import totals into a quote and apply margin/markup. See also quoting from a cable list.