Note: Once you've set up your markup and your client makes a payment, you can pay suppliers and withdraw your markup from the trip's "trip funds," which you can read more about in this guide.
How it works
Adding markup to an invoice item allows you to seamlessly (and invisibly) add your own margin to the cost of an item and collect those funds as profit. As this feature works through collecting direct payments, it is available only on direct invoices.
Adding your markup to the invoice item
On your invoice, add an invoice item, click the pencil icon to edit that item, and then choose the option to add a markup:
(Note: For members using Legacy Direct Payments, this feature utilizes our Funds platform. If Funds is not already enabled for your trip or group, you will be prompted to enable this feature before processing the authorization. You can learn more about Funds in our FAQ.)
You'll add the supplier price ("unit cost") and your markup to each invoice item. The unit cost and the unit markup will both be invisible to the client. On the completed invoice, they will only see their total price ("unit price"):
Calculating your total markup and profit
Finally, check out your total markup, processing fees, and profit for the invoice in the summary. Note that turning on the Convenience Fee feature will pass along the processing fees to your client, so your full markup will be available to you as profit:
When adding payments to your payment schedule, keep in mind that the "unit price" is the number to watch -- that's the amount that the client will be responsible for paying.
Now that you've added markup to your invoice item, learn how to pay suppliers and collect your markup.
Comments
12 comments
Will something like this become available on packages within direct group booking pages? It would be nice to make the convenience fee invisible for group bookings.
Hi Brendan! While I can't predict for sure that we'll introduce this specifically for group booking packages and add-ons, I will say that you can currently enable Group Funds to help with your concern.
With Group Funds, you can turn off convenience fees and add your markup (and enough to cover processing fees) directly to the package price, and when the payment hits your Group Funds balance, you can then withdraw your markup and pay your suppliers all from that balance, without showing fees or markup to your clients.
You can learn more here: https://help.traveljoy.com/hc/en-us/articles/4411031348884-Collect-group-funds-to-instantly-pay-suppliers
So with this method, the mark-ups will have to be added after they book a group package?
Hi Brendan! The markup would be added to the price of the package when you create the group booking page.
For example, if a package is $500 and you'd like to add $22.80 for fees and a $30 markup, you'd price the tour at $552.80 instead of $500.
This is a bit of a workaround that we hope to improve in the future, so this advice is designed to help bridge the gap until we're able to make this more like the experience in the guide.
I am not given the option to add a markup to my group booking page, can you tell me how to get this to appear?
Hi Britney! Please see my answer above for Brendan, as this addresses the same issue.
Hey Travel Joy Team!
I hope everyone is doing great, when adding your Mark-up to a Group Page will part of the money go to the Supplier and the other half go to your account? If you're paying the Supplier directly?
Hi Yashanda,
Thank you for raising this question! As TravelJoy does not directly pay your supplier, you won't have to worry about your markup ending up somewhere you didn't plan. If creating a Group Booking Page (direct), you can have the funds go directly to your bank account or gather them in group/trip funds. If using our funds feature, you can withdraw your markup at any time. You can learn more here: https://help.traveljoy.com/hc/en-us/articles/4408792671508-Pay-your-suppliers-and-withdraw-your-markup-from-trip-funds-or-group-funds
Do i have to pay additional processing fees for the withdrawal of funds, that already paid a processing fee to get into the trip funds?
Hi JaWana Travel! You won't pay any fees when using the money in your Funds balance. This includes withdrawing the balance, as well as paying suppliers from the balance using virtual cards or wire transfers.
Alan in your calculation above: https://help.traveljoy.com/hc/en-us/articles/4408792352532/comments/4723890689684, I'm confused about your calculations would you kindly share your formula for how you arrived at $22.80? It worked out to be $33.15 net mark-up after fees, but as you add a fee buffer, the fee amount goes up, and I'm so far removed from my Algebra lessons, that I can't figure this one out.
Thanks!
Hi Heidi!
It looks like I originally calculated the processing fees only on the original $500. When calculating for a charge of $530, I get $23.15. However, neither of these tells the whole story.
As you've mentioned, it's very complicated to reverse-engineer a theoretical "buffer" to build in the convenience fee since the processing fees will apply to the buffer itself.
This is a question we've received a number of times from folks, so I I worked with ChatGPT this afternoon and came up with this formula, which appears to work:
In this case, "x" is the "buffer," so:
That part's pretty straightforward, but here's where it gets a bit complicated. The processing fee will apply to the full charge amount, including the buffer, which can be written out like this:
When you simplify all the known amounts in that formula, you get $24.15, so:
Going back to the original equation, let's remove the initial $530 from both sides, and move the remaining dollar amount to the right side of the equation:
Simplifying the left side would give us a value of .955 * x because:
With a final equation of:
This works out to $25.30, so the "buffer" would be $25.30, for a total price of $555.30
Indeed, when you calculate the processing fees on $555.30 based on 4.5% + 30 cents, you get total processing fees of $25.29 -- one penny off, as close as we can come to getting it exactly right.
I know this is certainly more algebra than anyone wanted today! 😊 That said, it was a helpful exercise for me to walk through as well, as we've had a few folks insist over the years that there must be a very simple formula. This will certainly help us explain the power of the convenience fee button a little more clearly.
If you have any further questions, don't hesitate to let us know!
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