Understanding and Setting Product Cost and Profit

What is Product Cost and Profit Tracking?

Product Cost and Profit are optional features in your CRM that allow you to record the expense of delivering a product and automatically calculate your profit on each sale. When enabled, you can see your profitability directly within the product settings, eliminating the need for separate spreadsheets or manual math.

Key Benefits

Using this feature provides several advantages for your business:

• Integrated Profit Analysis: View your profit margin for every product or variant directly in your CRM.
• Automatic Calculations: Enter either the cost or the desired profit, and the system instantly calculates the other value for you.
• Works Across All Products: Track costs for one-time purchases and subscription-based products, including different prices and product variants.
• Accurate Cost Data: The original product cost remains unchanged even if an invoice total or calendar appointment price is manually adjusted.
• Detailed Exports: Export transaction data with a dedicated column for product cost, making financial reporting and reconciliation straightforward.

Before You Begin

To use this feature, ensure you have:

• Access to the Payments section and the Products area within your CRM.
• At least one product created, either new or existing.
• The necessary user permissions to create or edit products.

How to Enable Cost and Profit Tracking for a Product

You configure cost and profit at the individual price level for a product. Follow these steps to set it up.

Step 1: Navigate to Products

From the main menu, select Payments. Then, click on Products in the top navigation bar.

Step 2: Create or Edit a Product

Click + Create Product to make a new one, or click on the name of an existing product to edit its details.

Step 3: Access the Pricing Section

In the product form, find the Pricing section. For an existing product, you may need to click an Edit button next to the specific price you wish to modify.

Step 4: Enable the Feature

Within the Pricing section, locate and check the box labeled Add Margin. This action reveals the Cost Price and Margin input fields. Enabling this does not affect any past transactions.

Step 5: Enter Your Values

You can choose to enter your data as a monetary amount or a percentage. Enter a value in one field, and the other will calculate automatically based on your set selling price.

• Cost Price: Enter the amount it costs your business to provide this product. This value cannot be negative.
• Margin: Enter your desired profit. Use the toggle next to this field to switch between entering a specific Amount or a Percentage.

Note: If you check the 'Add Margin' box but leave both fields blank, the system will assume the Cost Price is the same as the Selling Price, resulting in zero profit.

Step 6: Save the Product

Click Save to store the cost and profit settings for this product price. These values will be included in future data exports.

How to Enable Cost and Profit Tracking for Product Variants

For products with options like size or color, you configure cost and profit at the variant level. You must have variants created for the product first.

Step 1: Go to the Variants Section

While editing your product, navigate to the Variants section.

Step 2: Edit a Variant

Find the specific variant (e.g., 'Large', 'Blue') and click its Edit button.

Step 3: Enable the Feature for the Variant

Inside the variant's pricing details, check the Add Margin checkbox.

Step 4: Enter Cost or Profit Values

Just like with a standard product, enter either the Cost Price or the Margin (as an amount or percentage) for this specific variant.

Step 5: Save and Configure Other Variants

Click Save for the variant. You can then repeat this process for each variant, allowing you to set different costs and profits for different product options or price points.

How Cost and Profit Values Work Together

The Cost Price and Margin fields are dynamically linked based on the product's Selling Price. Changing one value or the selling price automatically updates the other.

• In Amount Mode:
  • Margin (Amount) = Selling Price − Cost Price
  • Cost Price = Selling Price − Margin (Amount)
• In Percentage Mode:
  • Margin (%) = ((Selling Price − Cost Price) ÷ Cost Price) × 100

Important: The margin percentage has an upper limit of 100% and a lower limit of -100%.