Calculate your profit automatically with the new Profit feature!

slabwareblog

1 year ago

In the latest SlabWare update, we adapted the system to automatically calculate your profit margin. You can now define how much profit you want to have, and the system will calculate how much you should charge to obtain it.

To put it simply:

1 – You’ll see how much profit you’re having with the prices you’re currently charging,

2 – You can use the system to re-calculate how much you must charge for each item to obtain the desired % profit, and

3 – You can use the profit margin to give discounts to your customers on the order’s items, while still controlling the profit you’ll have.

And the best part: it is super easy to operate!

To access the feature, go to your quote or invoice page, and find the button Profit, located on the right-side menu.

Tax & Fee: Check the options to use the order’s Sales Tax and other Fees (you define how much the fees will be) in the calculation.
Profit Goals: Use the gear icon to define the minimum profit you accept working with and the desired amount for the order. The $ for the minimum and desired values shows how much money you’ll have in each case.
Order Summary: Similar to the Area Summary below, but containing information about all the areas and items in the order.
Area Summary: In this field, you have different information – Subtotal is how much you charge for the items in the area; Sales Tax is the tax charged in that area; Total is the sum of them both; Area cost is how much the materials and services in the area cost. And finally, the green boxes are the net profit you’re having in that area, and how much % of your cost that profit represents (Ex, if your profit is 200 and your cost is 100, then you’ll have 100% on the Area Profit %).

And about the Columns in the field Area Summary:

Item: The item contained in the order.
Qty: how many units or sq. ft. of that item the order has.
Unit Value: how much you’re selling a unit (or a sq. ft.) of the item. If you want to change the unit value (let’s say from sq. ft. to unit), you have to change them inside the Order.
Total: How much you’re charging for the whole total – or sq. ft. – of that item.
Cost: How much that item costs. For Edges and Services, the cost refers to this Order only. If you want to change an Edge or Services cost, search the left-side menu Products > Edges (or Products > Services).
Markup: How much percent of the cost you’re selling the item (comparing columns Cost and Total).
Tax: Includes or not the selected Sales Tax for that item in the order.

That said, to operate the system, you need to fill in the column Cost in the table – in case it hasn’t been filled in yet.

In this example, we’ve already filled it in. Check it out below:

Once you’ve filled in all the costs correctly, you can use the Markup column to reach your desired profit. If you want all the items to have the same Markup, you can use the Change All field.

Once you adjust the Markup column, the system will then change the Unit Value column to make your profit fit the desired values (the ones you set on the Markup).

The exceeding value in your Area Profit % corresponds to the Sales Tax you must charge above the cost.

To give an example, we’ve set the Change All to 0 (zero). Note that the Total equals Area Cost + Sales Tax. The Area Profit is the exact same value as the Sales Tax because the only profit you’ll have is the Sales Tax.