---
title: "Setting Up Fixed Price Projects in Ressio: Selection Allowances and Markup Calculations"
description: Goes over the additional details required when setting up a Fixed Price project and the effect they will have.
---

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# Setting Up Fixed Price Projects in Ressio: Selection Allowances and Markup Calculations

## Goes over the additional details required when setting up a Fixed Price project and the effect they will have.

When setting up projects in **Ressio**, beyond choosing the cost structure—**Cost Plus (Open Book)** or **Fixed Price (Lump Sum)**—there are additional important settings to configure when working with **Fixed Price Projects**.

This article will guide you through the key options available for **Selection Allowances** and **Markup Calculations for Selections** in Fixed Price projects.

#### Selection Allowances in Fixed Price Projects

When setting selection allowances in Fixed Price projects, you can choose **how the allowance is displayed to the customer**. There are two options:

### 1. **Builder Cost (Go Shopping Amount)**

- The customer sees the **base cost of the item before any markups, taxes, or additional expenses**.
- This option clearly shows customers what they are allowed to spend if they want to stay in budget
- Markups, taxes, and additional costs are added separately, depending on the markup rules selected. 
- Useful for open ended selections where clients (or designers) will do their own shopping and you want to ensure they don't spend your profit.
- Example 
    - Builder set a lighting allowance of $6000 an additional 10% is added onto that total for markup bringing the total to $6600
    - Client will see that they have $6000 as an allowance to spend freely.

### 2. **Customer Price (All-In Amount)**

- The customer sees the **total price of the item**, which already includes **markup, taxes, and other expenses**.
- This option fully hides your internal cost structure and profit margins from the customer.
- It helps prevent the customer from reverse-engineering your markup or questioning your pricing.
- Useful for pre-defined selections or upgrade choices where you want to be 100% clear with the client what the total cost of making that selection will be.
- Example 
    - Builder set a lighting allowance of $6000, 10% of which is set aside for markup.
    - Client will see they have $6000 as an allowance which they will know includes all costs and must budget accordingly.

#### Markup Calculation Options for Selections

Ressio offers **three markup calculation methods** for selections within Fixed Price projects:

### 1. **Variable Markup**

- The markup **increases or decreases based on the actual selection price** compared to the allowance.
- Example:
  
    - Allowance: $1,000
    - Markup: 10%
    - If the customer selects an item costing **$1,200**, the markup increases to **$120**.
    - If the customer selects an item costing **$800**, the markup decreases to **$80**.

### 2. **Post-Lock: Can Only Increase**

- The markup **increases if the selection exceeds the allowance**.
- If the selection is **under the allowance, the markup is based on the original allowance**.
- Example:
  
    - Allowance: $1,000
    - Markup: 10%
    - If the customer selects a **$1,200 item**, the markup increases to **$120**.
    - If the customer selects an **$800 item**, the markup remains at the original **$100**.

### 3. **Post-Lock: Locked**

- The markup is **fixed and does not change**, regardless of whether the customer’s selection is over or under the allowance.
- The markup is always calculated from the original allowance amount.
- Example:
  
    - Allowance: $1,000
    - Markup: 10%
    - If the customer selects a **$1,200 item**, the markup remains **$100**
    - If the customer selects an **$800 item**, the markup remains **$100**.

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