We are working on a new Proposal Pricing method in TakeOff Plus this week and next. Our current methodology has primarily been 'Costs * Markup percentage'. As an FYI, Markup dollars are a percentage of costs, Margin dollars are a percentage of sales. The same 30% used as a markup or margin percentage will give you very different results respectively when figuring a sales price.
Pricing things by 'Margin' calculations has been more typically seen in a retail environment, but we have seen it become much more prevalent in our customer base and we have had many more requests for this type of pricing. We will be giving the ability to set default margin percentages by 'Bid Item Types', for example: materials, subcontractors, labor (in-house), etc. So, theoretically speaking you might set materials at 40% where subcontractors may only be 20% in your businesses pricing matrix.
We are also incorporating a fixed 'Retail' pricing scenario with this by item. We already have an area in the default cost area of the Items & Prices menu that allows to set a default Markup % which in turns set a retail price. You can also simply enter a retail price for this item and that will be used in your bid. The bids will have the ability to use either method, plus we will show an overall gross profit margin% onscreen for easy verification to help you insure the best possible profit realization based on your company goals.
Thank you for reading.
Steve Mallory
CSG Product Management Director
Changing the way contractors do business!
Sunday, June 12, 2011
Subscribe to:
Posts (Atom)
