# How does pricing calculations work? Shedmate's quoting system works with 3 pillars * Your pricing database (Item Name, Category, Unit, ERP Code) * Your pricing calculations (Set of rules for the Bill of Materials or Formulas to calculate specific items) * Pricing rules for markup, taxes and discount Understanding how these systems work together will create the foundation for you to use the quoting system. This set up is generally performed by company managers, and sales teams might or might not be involved in the pricing setup. In the video below, I explain the concepts behind the Shedmate quoting system and how pricing and calculations work. I discuss the pricing database, which includes items, categories, units, and prices. I also cover pricing calculations, where the bill of materials is used to determine how materials are quantified and priced. Additionally, I explain how project-specific individual prices are created by combining the total price of each item in a shed. {% embed url="" %} --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://shedmate.gitbook.io/shedmate-help/setting-up-shedmate/costing-database-and-pricing-calculations/how-does-pricing-calculations-work.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.