To fit a wide range of companies Upsales can be tailored to fit different sales models, such as monthly (MRR) or annual recurring revenue (ARR), Contribution margin (CM), or simply the most common one; showing the actual order value.
How to activate or change a sales model
- Note: To change the sales model you need the user status of Administrator
- Enter Upsales settings
- Click Account Settings
- Inside this page, you will find the different sales models available, click to select one, and set up the sub-options.
The default, order value model
For most companies this model is sufficient and it's what Upsales is set to by default. Having this model active means the sales figures shown in Upsales are the sum of the product and their prices.
The Contribution Margin model (CM)
The contribution margin shows you how much profit you are earning per product or order. The calculation is really quite simple:
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
Read more about this sales model here
The Recurring revenue model (ARR/MRR)
Using subscription type products? This is the model you want to go with.
- Configure Upsales to display ARR/MRR values for your opportunities, orders and reports
- Set up one-off and subscription-type products
- Add a default subscription 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)
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