Markup charge
Definition of a markup charge relating to sublet towing services
Definition
A markup charge is a percentage, up to 15%, applied to sublet towing services. Markup charges are
- allowed only on services completed by a company or employee other than the towing company originally called to the crash location, and
- calculated on the net amount of the invoice provided by the sublet provider.
Use
The markup percentage is intended to cover
- administration costs for contacting and arranging services or additional equipment
- advance payment for the cost of equipment or services
- account management and billing fees, and
- financial risks associated with collections.
Exception of use
The markup costs are not applied when a trade discount has been provided.