This feature is expected to launch publicly Q1 2021. We are currently looking for pre-release testers, Please contact email@example.com if you would like to try this feature out before release.
The contribution margin, or as it's sometimes called; Profit 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.
How to set purchase cost for a product
- Note: to edit products you need the user status of administrator
- Enter Settings in Upsales
- In the left sidebar scroll down to the CRM-section
- Click Products
- Click a product to enter its edit mode
- In the dialog that appears you now have fields for Price and Purchased at cost
- Price: The default selling price that the customer should pay
- Purchased at cost: How much you as a company paid for the product
- When you've set the price and cost, click Save.
Sub-option: Show CM or actual order value?
This option lets you decide what sales figures to be shown by default across Upsales. For example, selecting the actual order value-option will make your opportunities, order, and subscription show the actual order value by default, but you still have the option of toggling to show Contribution Margin if you'd like. Selecting to show contribution margin has the same features; the Contribution margin is shown by default ut users can toggle t see the actual order value.
Where is the Contribution Margin(CM) shown?
- Sales board
- Column summaries
- Opportunity cards
- Goal graphs (if CM goal is activated)
Setting CM-goal for your users
When the Contribution margin sales model is active you can now set CM-goals for your users instead of just the regular goal models. Before setting this goal, make sure that the products you sell have a purchase price added in Upsales (how to set purchase price is explained above).
- Note: to set goals you need the user status of administrator
- Enter Upsales Settings
- In the left sidebar enter the CRM-section
- Click Goals
- Select the Contribution margin-option
- In the table, set a sum for each user and click Save