New: Copy Products & Site Address Reference

You can now copy a product or kit at the click of a button on the Products / Services list screen. Just click on the copy icon for the product or service and the system will create a complete copy.

There is now a client’s address reference field for users who need to store unique identifiers for their clients’ sites. This appears on the drop down on the quote and other screens as well.

 

New: Click-to-Edit & Screen Changes

When you click on a line item in a quote or job, etc, it will automatically change into edit mode. You can press the return key to save your changes.

We’ve also moved the main edit screen around to keep the client notes section always visible. Last week we added formatting to this and as more clients are now using it, we felt it was better to have it permanently visible. We’ve moved other items around to save on space.

The settings screen has been changed listing each section on the left of the screen. Hopefully, this will make it easier for you to find the settings you need.

NewSettings

Please let us know if you have any questions or problems with the re-design. The intention is to make the system easier for you to use so please let us know if it has or hasn’t!

 

New: Text Formatting in Your Client Note:

You can now style your client notes with bold, italic, colours, tables, bullet points and more.

NoteEntry

In the sample quote below, the {Notes} tag has been moved to the top and is populated with text in bold, colour, with bullet points and a table:

NewNotes1

This will enable you to produce more appealing quotes and add more emphasis to your comments.

New: Labour Rate and Hours for a Product or Service

You can now add a labour component to a product or service. This is useful when, for example, you sell a product that you also install.

To set up a labour component for a product, open a product and enter the labour name, hours and rate.

LabourOnProduct

To see this on a quote, select the cog in the top-right hand corner then Quotation Setting and tick ‘Labour Rate Columns’

ControlPanel

You can now see them on all your quotes:

LabourOnQuote

This will add the labour cost to the product price to give just one Net price to the client.

If you want to show the breakdown between the item price and the labour components on your PDF add in the tags:

{ItemTotal} The net total price of the quotation item.
{ItemPrice} The price of the quotation item.
{ItemLabourName} The labour name of the quotation item.
{ItemLabourRate} The labour rate of the quotation item.
{ItemLabourHours} The total number of labour hours of the quotation item.
{ItemLabourTime} The total number of labour hours of the quotation item in time format. Example: 2.5 hours becomes “2:30”
{ItemLabourTimeLong} The total number of labour hours of the quotation item in long time format. Example: 2.5 hours becomes “2 hours 30 mins”

If you want to total the labour for all the quote items, use these tags:

{Labour} The total labour of the quotation.
{LabourHours} The total number of labour hours of the quotation.
{LabourTime} The total number of labour hours of the quotation in time format. Example: 2.5 hours becomes “2:30”
{LabourTimeLong} The total number of labour hours of the quotation in long time format. Example: 2.5 hours becomes “2 hours 30 mins”

New: Improved Client Acceptance & Change Pages

 

ReviewPage

We’ve simplified the screens for clients to review, change and accept your quotes. Some clients found that the screens were confusing, so we have removed some elements and given both pages a more consistent look, with instructions on the left. We’ve also simplified the language, changing from ‘Customize’ to ‘Change’. The new review screen is shown above with the instructions or steps on the left-hand side.  As the client steps through them, completed ones turn green.

On the ‘Change’ screen, when you click on the delete icon on a line it will remove the line from the visible quote. If the client wants to revert to the original quote details they can click on the ‘Reset’ button:

ChangeScreen

 

Please let us know any feedback you have on these.

 

 

 

 

 

Need New Quotation Software? How to Get The Right One For You

Need New Quotation Software?

If you are looking for a new proposal or quotation software system, the worst thing is not knowing if a new system will do all you want. And, of course, whether its cost will be justified. This article will help you be clear on what you want and what is available.

As with most things, you will probably have to balance out the features and prices from different systems to get one that works for your business and budget. 

The first half of the article covers what you need and the second half covers the important software functions that are commonly available. You probably won’t need all of them but it will help you to know what they are. I also describe the differences between proposals and quote software so you can quickly narrow down your search.

Part 1 – Working Out What You Want

I’ve based this article on our experience of helping clients find the proposal or quotation software for their company. We’ve found clients have at least one of these reasons driving them, and sometimes more.

  • More consistency of brand and pricing across quotes
  • Better tracking of quotes
  • Making sure that product or service details are always included
  • Quicker quote creation
  • Streamlining the quotation process

How Unique Is Your System?

All businesses are unique and that means many of their processes are. Most of the time these unique processes give a company a competitive advantage. However, many processes should not be unique and allowing them to be so can add to cost and make improving them with software difficult.

Examples of processes that add a competitive advantage are in customer service or other processes where they affect the customer when they are choosing to buy from you.

The processes that shouldn’t be unique are often internal and have legal obligations. Examples of these would be for accounts and human resources.

How do you assess how unique your quotation process is? If you have experience in other companies this will be clear. If you or your staff don’t have this experience, you can trial Software-as-a-Service (SaaS) quotation software tools to see if they do the job you need. If they don’t, your quotes process is unique.

However, this leads to the question of whether it should be. I’ve frequently found that sales staff are convinced that their way of quoting is the best and should not be changed, even if the person next to them uses a different method and is more successful. You will need to boil this one down to make sure you are happy what the fundamental process is.

Where there is this divergence of opinion in a sales team I’ve found that those salespeople with the ‘unique approach’ are usually the most resistant to adopting a new system. However, if you address their fundamental concerns which are usually more about speed and the appearance of the quote you should win them over to the new system.

Is There a System for You?

Once you know what you want you can start looking for matching quotation software. However, bear in mind that you are unlikely to get a complete match for your requirements so you should be prepared to prioritise the most important functionality.

Do you Describe or List What you are Selling?

Proposals are generally seen as documents that are very text oriented. Quotations are seen as being made of multiple priced items.  This is a big split in how proposal and quotation software works. One system will struggle to do both well, especially at the two extremes:

  • Large amounts of editable text -> Proposal
  • Large numbers of sales Items -> Quotation

If your requirements are mid-way between these you may find both proposal and quotation software systems that will do what you need. In this case, you will have a greater selection available to you. You should trial one more from each side (quotes and proposals) to see which is the best fit.

Quotation Software – More Details

These usually have a products or services list and a way of managing them either manually or from files or other systems. Products or services can be searched for and added quickly to quotes, usually with a default price. These quotation tools usually include some way of calculating prices for margins, discounts, mark-ups etc.

Example sectors for these systems are:

  • Lighting
  • Electronics
  • Kitchens, Bedrooms, and Bathrooms (KBB)
  • Office furniture
  • Printing
  • Merchandising
  • IT Services
  • Equipment

Some of these quotation software systems are:

  • Quikflw
  • QuotientApp
  • KBBConnect
  • ConnectWise

Proposal Software – More Details

These have functionality that is focussed on text and images and provision for small or no products or service items. They are usually set up for substantial text editing and manipulation, as well as changing the graphic appearance of the proposal. Frequently, they will lack the calculations for margins and mark-ups, etc. that you will find in quotes software.

Example sectors for these systems are:

  • Web design
  • SEO
  • Marketing
  • Consultancy
  • Software development

Some of these proposal software systems are:

  • Proposify
  • BetterProposals
  • PandaDocs
  • Bidsketch

Where will it be Installed?

Onsite / Intranet

Anything with a server installation is called ‘onsite’.  This might be where the system is based on web technology but only available within the organisation’s network (intranet).

There are some advantages to these, where:

  • There is still a requirement to keep data within a company’s sites
  • The system needs to connect to other hardware such as telephone systems
  • The internet connection speed to the office is slow
  • You prefer to buy the software up front and not pay any on-going charges
  • There are no other suitable solutions for your requirements

The disadvantages of these systems compared to online ones are that:

  • You have to install, maintain and backup your server
  • You have to manage the software upgrades
  • Accessing it from outside the office and on iPads is more difficult

Desktop

This is where the software is installed on individual machines. Sometimes these systems will connect to a database on an internal or external server.

The disadvantages are that you have to manage

  • Install the software on PC’s (if it’s not an intranet system)
  • Different versions for PC’s and Mac’s
  • The effects of upgrades to Windows, MS Office or Apple iOS devices

The advantages of desktop systems used to be that they were more user-friendly and powerful than internet systems. However, this is no longer the case as web and intranet systems have caught up and surpassed desktop systems for usability.

Cloud or Online

This is now the most common approach for quotation software. The database is held in the cloud or on a remote server. The functionality for the user is available in web browsers and possibly smart device apps.

Onsite, Desktop or Online?

After assessing whether any of the quotation software you test will do the job for you, you need to balance out whether:

  • You must have your data on your site or you are comfortable with it being online. In the last few years, most companies have become comfortable with their data being online
  • You prefer to pay upfront or monthly
  • Your internet connection is fast enough to use an online quotation software solution.

Prices & Packages

Online systems are usually priced based on the number of users, the functionality you are subscribing to and sometimes the number of quotes or proposals you will have live.  Licencing by the number of users is common across virtually all the packages. Some price per user, others bundle up into groups (i.e. 1, 2-5, 6-10), etc. If you have more than that it will be worth asking for a special price.

You can usually buy one month a time with recurring credit card payments, but some companies lock you into a year’s contract or insist that you pay the year upfront, even if they are advertising monthly prices.

Onsite systems tend to charge a large amount up-front but less on an ongoing basis.

Team / User Management

If you need to:

  • Prevent some users from editing any quotes
  • Prevent one or more sales person from seeing quotes owned by another salesperson

You will want a system that provides some level or team and user management.  Some don’t offer this at all, and those that do, such as Quikflw.com and Proposify.com put this in their higher price bands.

Number of Active Quotes or Proposals

Some proposal and quotation software systems restrict the number of proposals and quotes you can create per price package. The advantage to this is that if you don’t have more than 5 active quotes or proposals in a month you can use the software at a lower price. However, if you are a high-volume user (and this can mean more than 5 active quotes or proposal) you will need to step up to the next package and price.

These restrictions are more commonly found in proposal software and are clearly shown in their price and packages. For example, Proposify limits the number of active proposals to 5 in the base package and 50 in the next one. BetterProposals active proposal limits are 10 and 50 for their first two packages.

Quotation Software tends not to have these limits, so for example, www.Quikflw.com and QuotientApp both offer an unlimited number of quotes.

Testing the Software – Free Trials

Most quotation software systems have free trial offers. You can get a feel for whether the system will work for you and I recommend making use of them. Most providers will assist in getting you up and running, as well as giving you a demo.

However, some companies don’t offer a free trial. This can be because:

  • The system needs to be set up for each client or prospect
  • The system is not easy to use so they want to guide you through their system with a demo
  • They want you to make contact with a sales person so they can sell to you directly
  • They want to draw you into the sales process

In these cases, you will be much more reliant on your research, the demo, customer testimonials and how much you trust the company.

Part 2 -Common Functionality

This part lists what I’ve found to be the most asked for and common quotation software functionality.

It is not an exhaustive list of functionalities. If all systems have a certain functionality, I haven’t listed it. Bear in mind that not all of them will apply to your requirements.

Managing the Quotes and Proposals

This is an obvious one, but some older desktop-based systems don’t do it well.

Every online system will do this, with varying degrees of ease. You should be able to see all your current quotes on one screen, filter and search through them.

Simple Calculations

Examples of these are:

  • Discount
  • Margin
  • Mark-up

We cover these in more depth in another blog. You will obviously know if you want to use these but most proposal software won’t have this functionality, whereas most quotation software will.

More Complex Price Calculations

This is where many online quote systems and virtually all proposal software struggle. Most systems can manage prices where it is a collection of items with no interdependency. An example would be purchasing one desk and four chairs. Any system can handle this.

More than one Layer of Products

Where it gets complicated is where there is a simple mathematical relationship between items. If, in the above example, there is a one desk to four chairs relationship when you increase the number of desks to three you want the system to automatically increase the number of chairs to twelve. Only a system that has kit or bundle functionality will have this. Kit /bundles functionality is covered later in the article.

Here is a screenshot of how Quikflw manages kits:

Kit Items

Highlighted In red you can see that the sub-items’ quantity is the total bundle quantity multiplied by the number in each bundle. In this case, there are two layers.

If you need to have more layers, for example, that a chair is also a kit made up of the frame and four castors, you won’t find that functionality in most online quotation software systems. Quikflw and QuotientApp don’t have it. However, you will find it in either a sector quotation software tool or as part of an Enterprise Requirement Planning (ERP) system. It is closely related to Bill of Materials (BoM) functionality.

Other Calculations

The final type of calculation is where there is a complex relationship between items, particularly where you are pricing based on raw material sizes. For example,

  • If you sell one desk you will use and charge for one sheet of metal,
  • If you sell two you will still only use and charge for one sheet
  • If you sell three you will need a second sheet and therefore charge for two sheets.

If you have this type of calculation you will already have a way of making sure your prices look consistent to your clients, but it will be difficult to replicate this in an online pricing tool unless it has been designed for your industry.  But, if sector specific quotation software is too expensive, you can still use MS Excel to price a job and then create and send your quote from your mainstream quotation software. You will be able to upload your Excel file into the online quotation system to keep it associated with the quote.

Quote Templates / Proposal Templates

All the main online proposal and quotation software systems allow you to upload your own templates so your quotations and proposals have your style and branding. They also offer a library of pre-built to give you a feel of what can be done. Sometimes it is quicker to take one of these and customise rather than create from scratch.

Some of the older onsite or desktop quoting software are restricted to a standard or a small number of templates that cannot be edited. If you are looking at a desktop or onsite system make sure this is not the case unless it is not an issue for you.

Including Images

You should expect your proposal or quotation software to allow you to include images. Some older quote software tools do not have this functionality and this is frequently why companies upgrade.

Editing Functionality

Proposal software generally provides very flexible templates that you can adapt to each proposal. However, quotation software (i.e. driven by multiple products and services) is more restricted as it needs to allow for the automatic generation of products-based content.

How much do you need to change the structure and content of each quote? If it’s just some introductory text and then the products or services then most online quotation software will do the job. If it needs more in-depth text editing, with many paragraphs written for a specific quote, or use of images not directly related to the product or service, then you will probably be better with a proposal software tool. Testing these with a trial will help you make that decision.

Sending Invoices

You have two choices:

  • Create and send from your accounts software
  • Create and send from your proposal or quoting software

Some systems allow you to push the quote details to your accounts system. You can then log in to the accounts system, convert the quote to an invoice, and send.

Some quotation software such as Quotientapp.com and Proposify.com (which is more of a proposal tool) allow you to create invoices directly in apps such as QuickBooks and Xero. Betterproposal.io currently doesn’t have that integration.

There are two disadvantages to this:

  • Those creating the invoice will need to have access to the accounts system. You might not want to allow sales staff to see this. This is less of an issue if you have a small team where everyone does all the quotes and invoices
  • The styling of the invoices is unlikely to be the same as for your quotes

Other systems, such as Quikflw.com, allow you to create and send your invoices directly with matching branding from the salesperson without granting them access to the accounts system. Invoices are then queued and can quickly be imported into your accounts system at the click of a button by a member of the accounts team.

Creating Purchase Orders, Delivery Notes, and Others

If you are looking to do this you will need to either:

  • Connect to an Enterprise Requirements Planning (ERP) system, such as NetSuite
  • Connect an accounts system (e.g. QuickBooks or Xero)
  • Use a system that provides all this (i.e. it is an ERP)

Let’s look at these in turn:

Connect to Your ERP

This will depend on the integrations available from the Quotes system and the ERP. If both have an API and can talk to each other this is the best solution. If that is not possible some quote tools allow the export of raw quote data into a file (such as Quikflw’s quote export to Excel). You can then import this file into your ERP without having to type everything in again.

Connect to your Accounts System

Accounts systems do provide some functionality for this. However, they are primarily account systems, not ERP’s so they can be underpowered when it comes to this peripheral functionality.

But, this option will work if your requirements are light or involve only occasional purchase orders.

Your quotes tool might be able to connect directly to the accounts system to post relevant information or at least export data to file ready to be imported.

Buy an ERP System

An ERP with a quotation tool that does what you need is the best theoretical solution. This assumes that the quotes it produces and the purchase orders, delivery notes etc. are all sufficient for your needs.

However, as ERP systems are often large and complex systems the quotation tool is often not as good as stand-alone quotes software systems. They are also a large financial investment.

Bundles or Kits of Products and Services

If you quote for bundles of products or services then the ability to put them all together and drop into a quote is a big time-saver.  If you do this frequently, it will be vital. This functionality exists in quote software that can handle more complex product management, for example, Quikflw.com or QuoteWerks.

However, there is another option if your preferred software doesn’t have kits or bundles.  If you frequently quote for a common set of items and just remove a few of them between each quote you could make a ‘template’ quote. This is not sent to anyone. When you have a new quote to do, you copy this ‘template’ as the basis for the new one.  You can then delete the items you don’t need for that specific quote. This won’t help if you need more than one bundle on a quote, in which case bundle or kit functionality would be the only answer.

Support (and Location)

Do you want support that is available on the phone during your office hours – i.e. in your time-zone? If you do, then you can either look for a large company with support in your country or a smaller one based in your country. A bigger company is unlikely to be as flexible on feature requests as a smaller one and you will be less important to them, but a large company might have dedicated support resources and respond faster.

If you don’t think you will need much support then the location of the quotation software provider is obviously not important. Once you have trialed each system you will get a feel for how much you will need.

One List for Customers

You don’t want to be typing customer details into your Customer Relationship Management (CRM) system and then typing them in again to your quote tool. Most quotation software will allow you to connect to your CRM, import and update your customers and contacts so both systems are in sync.

If your CRM is on your site, whether on a server or local PC, this is more difficult and be very dependent on the software.

Allowing Clients to Change their Quotes Online

Some systems allow you to send your client a link to a page where they can make changes before accepting the quote. They might change product quantities or select different options you have offered them. The benefits to the client are that they:

  • Feel that they have more control
  • Can experiment with the price options

The advantages to you are that you can:

  • Give more than one option to the client
  • Allow them to make their choice and accept the quote without the delay of having to contact you to change and re-send the quote

This functionality is usually found in quotation software but not in proposal software.

Client Sign-Off

It has become more common for online signatures to be acceptable and as a result, most quotation software provides this option. This won’t be available on desktop systems as a system needs an online presence for this to work.

Taking Payment

To smooth the path from client acceptance to payment, some systems link to third-party payment systems so credit or debit card cards payments to be taken.

Synchronising your Product List

At a minimum, you should expect your new system to allow the import of your products from Excel, CSV or another file format. You should not have to type them all in.

If you plan to link to your accounts system you might be able to pull in your products or services list from there.

Connecting to Product Lists from Suppliers

Some more sector-specific quote software will be pre-loaded and kept updated with product lists from the main suppliers.  This can save you some effort in collating and updating the lists.

Restricting Access

I’ve already covered Team Management early in the article, but there are other types of access control you might want.  These are:

  • Read-only access
  • Preventing some users changing products and prices
  • Preventing users downloading data from the system

However, this kind of access is generally restricted to the more sophisticated quote software that can handle larger teams, such as Quikflw.com and Proposify.

To help you find out when evaluating a quote system, look for references to ‘roles’, ’permissions’ and ‘team management’.

Making the Final Decision….

Ultimately, only you can make the decision on what is the best quotation software system for you. To help you make the right decision, I strongly recommend signing up for trials and making use of each quote software’s support team to help you get the most from your testing.

Good luck!

Disclaimer

All information about the functionality of the systems mentioned is correct to the best of our knowledge at the time of writing. We try to keep our blogs up to date but some systems change quite quickly.

©Quikflw Ltd 2018

Should You Get a New Software System?

Assess2

We look at whether it is worth improving your processes with new software. Typical processes might be quotation software, or complete system processes such as quotes, jobs / sales orders / projects, delivery notes, time sheets, purchase orders, invoices and stock control. However, this article applies to any software implementation in a small or medium size business (SME).

Before deciding whether it is worth making an investment of time and money in a new system you should first assess the situation by answering these questions:

  • Is Your Current Process Stable or is it Constantly Changing?
  • What is the Cost of a New System?
  • Can You Split Up Your System?
  • What Are the Benefits?
  • What are the Non-Price Costs?
  • Should You Invest?

How to assess and answer these is discussed below.

Is Your Current Process Stable or is it Constantly Changing?

If your processes are stable then you can go onto the next stage. If they are changing frequently, usually when a company expands rapidly or changes the way it works, then it might be worth delaying putting in the new system until your processes have stabilised.
However, if you have a high-volume system or a very manual one then the investment in a new system might be repaid quickly enough to justify a short-term solution.

What is the Cost of a New System?

Obviously, a big factor in your calculations will be the cost of the system.  You can expect these kinds of levels for the different types of software:

  • Bespoke -> Highest
  • Customised – > Middle
  • SaaS -> Cheapest

If you find a system that already exists and does what you need it will probably be the cheapest solution for you, as well as requiring the least implementation time.One caveat to this is that you could also implement a bespoke solution that uses simple technology, such as Microsoft Excel or Microsoft Access. A system built with ones of these will not be the best in technical terms, flexibility or usability. However, if relatively simple and built within the limited capabilities of these tools it can be a cost-effective approach.

Can You Split Up Your System?

If this is possible and you can just do one part to start with there are advantages:

  • Lower initial investment
  • More manageable
  • Lessons learnt can be applied to later phases

Where Can You Split It?

First, look for any natural breaks in the process. These usually follow the different areas or departments in your company, such as sales, operations, accounts, etc.

Next focus on issues within the sub-processes. If there is one process that is time-consuming or has a high-impact on the business then it might be a candidate for change. An example might be procurement. If staff are struggling to find out whether items have been ordered or when they are due to come in and this is affecting deliveries and scheduling an automated purchase order system should have a positive impact.

When you are looking at a sub-process you need to work out what other functionality is required to provide this. In the purchase order system example, you will need a suppliers’ and possibly a products’ database and the screens to manage them so this will add to the effort and cost. As a result, it might not be as quick or cheap to implement as on first sight.

Of course, once you have implemented common functionality, as in this example of the suppliers and products database, you can use these for all the other areas in the business in later phases.

Finally, make sure the impact of implementing on sub-process first will not adversely affect those further up the process. You might want to make sure that you don’t implement an automated invoice creation system where the database structure doesn’t take account of the requirements for quotes or jobs. The details required for a product to be invoiced will probably be less than those for it to be ordered or built so you need to take account of those before starting.

What Are the Benefits?

The calculation of a Return on Investment (ROI) can be assessed using these measures:

  • Time saved (and for who)
  • Increased output
  • Improvement to work quality
  • Increased speed of response to client
  • Better visibility of processes
  • Better control of processes

You can employ mathematical equations to calculate these if you are sure of your forecast improvements in time saved. However, some of the measures are more based on opinions, such as better visibility, so are harder to quantify. Most SME’s know where their processes struggle and the probable benefit of a new system without in-depth mathematical analysis.

What are the Non-Price Costs?

Don’t forget that management will have to get involved in the design, selection, implementation and testing of the software. Staff will have to test and be trained on the new system. These will involve some internal costs. You also need to allow for the management involvement in the project implementation. Exactly what to expect is covered in a later article.

Should You Invest? And Calculating Your Return on Investment (ROI)

There are risks to implementing a new system which is covered in a later article. Looking at your return on investment and your known cost you can now balance them out to help you make a decision. It is sometimes useful to write these on either side of a sheet of paper to (costs and benefits) to help you make your decision. As the calculated figures are forecasts, ultimately this is down to your feel for your processes and business. Of course, this is different to the ROI calculations for the purchase of machinery where you can clearly forecast productivity improvements and therefore base your decision on the maths.

Next Step

If you think it makes sense to invest in a new system, you next need to assess the risks, which is covered in our next article.

 

3 Fundamental Calculations in Pricing and Quotes

Margins etc

Here we cover the 3 most commonly used calculation for quoting with an example for each. They are:

  • Discount
  • Margin
  • Mark-up

Whether someone chooses to use one or the other really depends on the type of business and the products or services sold.

Discount

This is the difference between the original or listed price and the agreed price.  For example:

Original price: £10.00

Agreed price: £8.00

Discount: £2.00    (£10.00-£8.00)

Discount in percent: 20% (£2.00 ÷ £10.00)

The calculation steps are: 

(Original Price – Agreed Price) ÷ Original Price

(£10.00 – £8.00) ÷ £10

£2 ÷ £10 = 20%

Margin

The margin is the difference between the cost of an item and the sale price, expressed as a value or percentage of the sale price

Cost:  £10

Sale Price: £12.50

Margin: 20% (or £2.50)

This means that 20% of the price is not a cost and therefore where you make your money.

The calculation steps are: 

(Sale Price – Cost) ÷ Sale Price

(£12.50 – £10) ÷ £12.50

£2.50 ÷ £12.50 = 20%

Mark-up

Mark-up is the difference between the cost of an item and the sale price but expressed as a percentage or multiple of the cost (whereas Margin uses the sale price).

Cost:  £10

Sale Price: £12.50

Mark-up: £2.50 or 25%

This means that you have added 25% to the cost price to give your selling price.

The calculation steps are: 

(Sale Price – Cost) ÷ Cost

(£12.50 – £10) ÷ £10.00

£2.50 ÷ £10.00 = 25%