The contribution margin shows profit per product group or order. The calculation is:
Purchase cost - Selling price = 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
- You have two tabs: Price and Cost:
- Price: The default selling price that the customer should pay
- Cost: How much your company paid for the product
- When you've set the price and cost, 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:
Where CM appears in Upsales
- Sales board
- Column summaries
- Opportunity cards
- 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.