Business sector
Wholesalers, Retailers, Resellers
Business goal
To calculate the margin for each product and assess the profitability of the whole deal
Problem
It was hard to analyze the margin both for deals and individual products
Tags: no automation, irrational waste of time, CRM, accounting automation, sales
Solution
Add a new tab called "Margin" in the Deal card and display there a table with the following fields:
|
Field name with metric units |
Description |
|
Product number |
The serial number of products in the Deal. It is set automatically and taken from the Products tab in the same Deal. |
|
Product name |
The product name. It is set automatically and taken from the Products tab in the same Deal. |
|
Quantity |
The number of pieces of each product. It is set automatically and taken from the Products tab in the same Deal. |
|
Cost, $ |
The cost of the product. It is set automatically and taken from the Products tab in the same Deal. |
|
Price, $ |
The price of the product. It is set automatically and taken from the Products tab in the same Deal. |
|
Total cost, $ |
The total cost of the product. It is calculated automatically using the following formula: Total Cost = Quantity * Cost. |
|
Total price, $ |
The total cost of the product. It is calculated automatically using the following formula: Total Price = Quantity * Price. |
|
Margin, $ |
The product margin in absolute units. It is calculated automatically using the following formula: Margin = Total Price - Total Cost. |
|
Margin, % |
The product margin as a percentage. It is calculated automatically using the following formula: Margin, % = Margin / Total Price * 100. |
The cost of the product is the only changeable field in the table.
Initially, the product cost is specified when filling out a product card in CRM. When a manager adds products to the Deal card, their details get automatically reflected on the Margin tab. It means that when adding a product to the Deal, the value of the Cost field is set automatically, but the manager can manually change it and click Save. The values of all dependent fields in the table will be automatically recalculated.
The Margin tab is synchronized with the standard Products tab. All changes made on the Products tab are automatically reflected on the Margin tab.
Under the main table, there is a block with summary info. It contains the following parameters:
|
Total Cost, $ |
The sum of the total costs of all products listed in the Deal. |
|
Total Price, $ |
The sum of the total prices of all products listed in the Deal. |
|
Total Margin, $ |
The sum of the margins of all products listed on the Deal. |
When changing the values in the Cost field, the total data is recalculated automatically.