Introduction
In this article, we'll explore how to view and utilize margin estimates on your quotes in LASSO. This feature helps you make informed decisions by providing a clear breakdown of revenue, costs, and profit margins.
Navigating the Margin Estimate Tab
When you're building a quote, you'll find a Margin Estimate tab. This tab displays a total of all the items you've selected for the quote, including gear, labor, additional charges, logistics, travel, and service fees.
Adding Items to the Quote
As you select items, the revenue, cost, and profit figures will update in real-time. For example, if you add gear and labor, the margin estimate will reflect these changes.
Additional Charges
You can add additional charges to your quote. For each charge, you can specify the revenue amount and any related expense amount. These values will be automatically calculated into the margin estimate.
Logistics and Travel
Similarly, you can add revenue and estimated expenses for logistics and travel. These amounts will also be factored into the total margin estimate.
Service Fees
Service fees revenue is recognized within the margin estimate, but there are no associated costs. Note that sales tax, even if reflected in the total, does not affect the revenue number.
Digging Deeper into Revenue
If you need a more detailed breakdown of the revenue amounts, you can use the slide-out feature. This will provide a breakdown of the gear, labor, and other sections, showing the respective revenue, cost, and profit margin amounts by resource. If any numbers seem unusual, you can navigate to the gear order or labor group to dig in further.
Understanding Cost Breakdowns
Gear Costs
The cost for gear is derived from the cost column. Costs can be stored in daily or weekly cost fields, which are applied based on the order rate. Alternatively, you can manually enter a unit cost, which will be included in the total. Please note, the cost fields do not have any “roll-up” functions. If there is a value in the cost field, it will be included in the Group and Order cost total.
Example: If you set a $500 cost for a 10k Laser Projector Kit and a $950 cost for the projector which is a child to the kit, both amounts will be factored into the total cost.
Labor Costs
The cost for labor depends on the method you're using. In the express labor view, costs are based on the pay information listed. You can see a detailed breakdown of these costs.
Estimated Fringe Costs: For accounts with estimated fringe setup, you can toggle this feature on. It will calculate estimated fringe costs based on the percentages set up for your account.
Scheduled Shifts: If you're using scheduled shifts, pay will be based on the pay rates applied to the position. This will account for any pay rules, such as overtime, double time, and holiday pay, and will also consider fringe costs if set up.
Real-Time Margin Visibility
As you select different items to include in your quote, you'll have a real-time view of your SMA (Sales Margin Analysis) margin. This helps you make informed decisions and optimize your quote for profitability.
Conclusion
By leveraging the margin estimate feature in LASSO, you can gain valuable insights into the financial aspects of your quotes. This real-time visibility ensures that you can make data-driven decisions to maximize your profitability.