Greater Quote Insight
What does greater quote insight mean for you and your business?
If you were told the moment your client accepted a quotation, how many hours of labour you’ve charged for, how much saving you’ve offered and what your expected margin was, what could you do with that information?
Many business owners only get this information when they speak with their accountant or business support consultant. This could be a week, a month or even a year later but if the way you currently sell your jobs is not producing you a profit, wouldn’t you want to know straight away?
Thanks to Flat Rate NOW’s catalogue, you are provided with this information immediately after the job is accepted.
Did offering a VIP discount at 20% completely wipe your expected margin?
Your tradesmen gave away a free GPO + cabling with the Hot Water System install and now the job is boarder-lining profitable.
We have created a video to explain this feature in Flat Rate NOW that was released in May.
How do we calculate the Expected Margin?
There are a number of components that come together to give you the expected margin. These are:
- Product Mark ups
- The additional mark up on each item (material/product) in the task is added together to produce a ‘Product Mark Up Figure’. These mark up tiers are set up in your configuration screen.
- Labour Cost Rate
- Your Labour Cost rate is the bare minimum you must charge to cover your cost of running the business. This figure must be placed accurately in your configuration screen to increase the accuracy of the margin prediction.
- Labour Sell Rate
- Labour Sell Rate is generally your Labour Cost Rate plus your profit margin. So, if your Labour Cost Rate was $100 and you wanted 20% profit on your labour, that would be $100 + (100 * 20%) = $120.
- When you decrease a task (VIP/Loyalty Pricing Tier) you may be reducing your potential profit margin. When you increase a task (Difficult Tier), you may be increasing the profit margin
Head to our Video Page if you need to set up any of the 4 points above.
Please note: the Charged Labour Hours are based on the numbers we have placed in the catalogue. These are all based on averages over 15 years of job diaries. If you finish the work before the Charged Labour Hours are completed, you have extra time in your pocket. If you do not finish the job before the charged labour hours run out, your expense on the business will begin to increase. This is the way up-front pricing works.
The figures provided are for indicative purposes and may not represent your actual margin or labour time.