---
title: Vendor Markup Policy — 15% Administration Fee
type: article
created: '2026-04-05'
updated: '2026-04-05'
source_docs:
- raw/2025-11-05-mid-week-call-w-melissa-99506659.md
tags:
- operations
- vendor-billing
- financials
- policy
layer: 2
client_source: null
industry_context: null
transferable: true
---

# Vendor Markup Policy — 15% Administration Fee

## Overview

Asymmetric applies a **15% markup** on all third-party costs that the agency pays on a client's behalf before passing through to the client invoice. This policy covers the real costs of administering vendor relationships: payment processing, credit card fees, invoicing overhead, and the time spent managing third-party accounts.

The policy is not intended as a profit center — it is a cost-recovery mechanism. As Mark put it: *"I'm not trying to make money on any of this stuff. I'm just trying not to lose."*

## The Rule

> If the agency pays a vendor invoice and then bills the client, apply a **15% markup** to the vendor cost before invoicing.

## Exception

> If the vendor invoices the client **directly**, no markup is applied. Simply pass the invoice along.

The distinction is clean: the markup compensates for the agency's administrative burden. If the agency never touches the money, there is no burden to compensate for.

## Rationale

When the agency fronts a third-party cost, it incurs:

- **Credit card processing fees** on the original charge
- **Payment processing overhead** when collecting from the client
- **Administrative time** managing the vendor relationship, invoicing, and reconciliation

Without a markup, the agency effectively subsidizes these costs out of its retainer margin.

## Practical Examples

| Scenario | Markup Applied? |
|---|---|
| Agency pays Moz $20/month, bills client | Yes — client billed $23 |
| Agency pays videographer $2,000, bills client | Yes — client billed $2,300 |
| Printer invoices client directly | No — pass invoice through |
| Vendor invoices client directly for hosting | No — pass invoice through |

A concrete example from practice: a videographer (Dan) was contracted at $2,000 per video; the client (Crazy Lenny's) was billed $2,500 — a $500 margin that covers the agency's coordination, invoicing, and administrative work.

## Scope

This policy applies to **all third-party costs** paid by the agency, including but not limited to:

- SEO tools (e.g., Moz, Ahrefs)
- Videographers and freelance contractors
- Print and direct mail vendors
- Software subscriptions billed to the agency

For clients with many locations or high vendor spend (e.g., multi-location clients with per-location tool subscriptions), the cumulative impact of unmarketed pass-throughs can be significant — making consistent application of this policy especially important at scale.

## Implementation

Account managers are responsible for applying the 15% markup at the time of invoicing whenever the agency has paid a vendor cost. Melissa Cusumano was tasked with communicating this policy to all account managers following the November 2025 operational sync.

When in doubt, the test is simple: **Did the agency pay the vendor?** If yes, mark it up 15%.

## Related

- [[wiki/meetings/2025-11-05-mid-week-call-melissa|Mid-Week Call w/ Melissa — 2025-11-05]] *(source discussion)*
- [[wiki/knowledge/agency-operations/client-contracts|Client Contract & Termination Policy]]
- [[wiki/knowledge/agency-operations/clickup-client-access|ClickUp Client Access Restrictions]]