How to activate or change a sales model
- You need Administrator status
- Click Settings → Account Settings:
- You'll the different sales models available:
Actual order value
For most companies this sales model is sufficient. That's why it's also the default. Sales figures shown in Upsales will be the sum of the product and their prices.
The Contribution Margin model (CM)
The contribution margin model shows you how much profit you're earning per product or order. The calculation is:
Purchase cost - Selling price = Contribution margin
When this model is activated a new field is added to your products called "Purchase cost". This field can have a default value and you can also change it inside your orders and opportunities.
- Configure whether Upsales should display the CM value or actual order value across Upsales.
- Set purchase price for your products
- Set sales targets based on contribution margin rather than just order value
The Recurring revenue model (ARR/MRR)
This model is when you're offering subscription-based products.
- Configure Upsales to display ARR/MRR values for your opportunities, orders and reports
- Set up one-off and subscription-type products
- Add a default length for your subscription products
- Set targets for both one-off and subscription products for your teams
- Define how to calculate your recurring revenue (option to include lost customers and contraction)
Combined ARR/MRR with CM
Combine the Recurring revenue model (ARR/MRR) with Contribution Margin (CM) to measure sales on both ARR/MRR and CM within Upsales
Choosing the option to combine ARR with CM allows you to:
- Products: Add costs to your products
- Sales & Pipeline:
- See both ARR/MRR and CM value as well as edit costs for order rows in Opportunities, Orders, Subscriptions
- See opportunities in sales board based on ARR/MRR, One-offs, Total order value and CM
- Company list: Access data on sales and sales growth for both CM and ARR/MRR values
- Report Centre: Follow up on both Recurring Revenue and Contribution margin KPI's
- Targets: Set targets for Subscriptions, One-offs and CM