Entering a Gross Margin Instead of a Mark-up Percentage
This article was submitted by Julia Molloy of the Molloy Management Group. Molloy Management Group is the leading provider of business tools and systems to interior designers nationwide. Our mission is to empower designers and advance the industry. We advocate for Studio Webware exclusively as the best operational tool for design firms and the industry standard.
Is there a difference? Yes! Markup and Gross Margin are not the same! I would recommend you discussing what method is most advantageous for your firm with your accountant. I am seeing many Interior Design firms preferring to enter a gross margin percentage into the ‘Mark up’ fields in Studio Designer or Studio Webware. Make sure to enter this into the Clients’ mark-up defaults in the ‘Codes’ tab in Addresses as well.
If you indeed choose to use the Gross Margin method, you’ll need to have the conversions either memorized (as if you need one more thing to remember!) OR… simply use this handy little conversion sheet I put together for you!