The contribution margin shows profit per product group or order. The calculation is:
Selling price - Purchase cost = Contribution margin
Activate the contribution margin (CM) sales model, and a Cost tab is added to your products. You can add this to orders and opportunities to calculate CM.
This article covers:
How to set cost for a product
- Click Settings → CRM → Products:
- Click the product you want to edit
- Select the product type (one-off or subscription):
- Set the product pricing by switching between the tabs:
- Price: What the customer pays for the product
- Cost: What your business pays for the product
- Click Save
Show CM or actual order value – how to choose
You can choose which sales figures display by default.
Click Settings → Account → Account settings:
With Contribution margin selected, click to show either contribution margin or actual order value:
You can also click the toggle to combine the CM with your chosen recurring revenue model. This is useful when you want to include the costs that come from generating your recurring revenue:
Where CM appears in Upsales
-
Sales board
- Column summaries
- Opportunity cards
- Opportunities
- Orders
- Subscriptions
- Reports
- Target graphs (if a CM target is activated)
How to set CM targets for your users
First, make sure the products you sell have a purchase price in Upsales. You can now set CM targets for your users.