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Quantity, Price, Discounts, and Markups

Define service quantity, price, discounts, and markups to shape invoiced amounts, manage costs, and track profitability in Productive.

Updated over 2 weeks ago

When setting up services in a budget or deal, you can define quantity, price, apply discounts, and add markups.

These inputs determine both client-facing amounts and internal profitability.

Quantity and Price

You always define a quantity (of hours, days, or pieces) and a price per unit. How these values impact invoicing depends on the billing type:

Fixed Services

  • Quantity × price = budget total (the agreed fixed amount).

  • The invoiced amount does not change, even if more or fewer hours/expenses are logged.

  • Example: You sell 100 hours of design work at €120/hour → budget total €12,000. Even if 150 hours are logged, the client is still invoiced €12,000.

Time and Materials Services

  • Quantity × price = budget total.

  • The client is invoiced based on actual time and expenses logged.

  • Example: You sell consulting at €120/hour with a quantity of 25 hours → budget total €3,000. If only 10 hours are logged, the invoice is €1,200 (10 × €120).

Non-Billable Services

  • Quantity and price are not used, since these services don’t generate revenue.

  • Example: An internal training session may still have an estimate for planning, but no invoiced amount is created.

Discounts

  • Discounts are applied per service line item.

  • They reduce the service’s total amount.

  • Example: You sell 50 hours of development at €100/hour = €5,000. Applying a 10% discount lowers the total to €4,500.

Markups

  • Markups are often used when reselling third-party costs (e.g., media buying, subcontracting).

  • They increase the unit price for the client, while maintaining visibility of the cost for profitability tracking.

  • Example: You purchase stock photos for €500 and apply a 20% markup. The client is billed €600, and your margin is €100.

Related Setup Options

When configuring quantity, price, discounts, and markups, you may also want to check:

  • Billing Types
    Define whether a service is billed at a fixed price, by time and materials, or tracked as non-billable.
    👉 Learn more here.

  • Tracking Units: Hours, Days, or Pieces
    Choose how you want to measure service delivery and capacity planning.
    👉 Learn more here.

  • Expenses and Reselling
    Learn how to track expenses, apply markups, and invoice clients for third-party services.
    👉 Learn more here.

  • What Are Services in Productive?
    Understand how services connect budgeting, time tracking, scheduling, and invoicing.
    👉 Learn more here.

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