> For the complete documentation index, see [llms.txt](https://support.ordereazi.com/central/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://support.ordereazi.com/central/order-management/products/product-management/product-pricing-and-markup.md).

# Product pricing and markup

If a product's price isn't set up properly, every rep works out their own, and margins slip quote by quote. In OrderEazi, a product's price comes from its cost, its pricelist prices, and the markup or margin rules you set. When a rep adds the product to a project, OrderEazi works out the price for them.

### Before you start

You'll need the **Edit Products** permission, in the **Products** permission group. Whether you work in markup, margin, or both is set for your organisation on the **Company Info** tab of [Organization Setup](/central/order-management/settings/organization-setup.md).

### Where prices are set on the product

* **Pricing:** The **Default Cost** and the **Recommended Retail Price (RRP)**. With Xero or QuickBooks Online, you also set the **Sales Account Code** and **Purchase Account Code**.
* **Pricelists:** A **Selling Price** for each pricelist. Select **Add Price** to add one. Every product has a DEFAULT pricelist price, which you can't remove.
* **Markup/Margin:** A **Minimum**, **Maximum**, and **Suggested** markup or margin for this product. Leave them empty to use the rep's own defaults.

### How the price on a project is worked out

When a rep adds the product to a project, OrderEazi picks the supplier, then the cost, then the selling price:

1. **The supplier:** The preferred supplier, if your organisation uses default suppliers. Otherwise the cheapest one.
2. **The cost:** That supplier's cost for the line's quantity, from its [cost tiers](/central/order-management/products/product-management/product-suppliers-and-cost-tiers.md), converted to your currency.
3. **The selling price:** If the client has their own pricelist, its price for the product. Otherwise the markup or margin is applied to the cost:
   * **The product's Suggested markup or margin**, if it has one.
   * **The DEFAULT pricelist price**, if it has no suggested markup or margin.
   * **The rep's default markup or margin**, if the DEFAULT price is 0.

The price is rounded to your organisation's rounding setting. The rep can change it on the line, within the minimum and maximum allowed.

**Example:** A chair costs R800 from its preferred supplier, with a **Suggested Markup** of 50%. A rep adds it to a project for a client on the DEFAULT pricelist, and the unit selling price is R1 200. For a client on a "Trade" pricelist with a price of R1 050, the price is R1 050 instead.

### Markup and margin

Markup is added on top of the cost: a R100 cost with a 25% markup sells for R125. Margin is the share of the selling price that's profit: a R100 cost with a 25% margin sells for R133.33. Your organisation chooses which one OrderEazi uses, and the product's **Markup/Margin** section shows whichever applies.

### Related pages

* [Product suppliers and cost tiers](/central/order-management/products/product-management/product-suppliers-and-cost-tiers.md): the costs prices are worked out from
* [Pricelists](/central/order-management/pricelists.md): set prices for groups of clients
* [Global Price List Rules](/central/order-management/pricelists/global-price-list-rules.md): price many products by rule