Have you ever needed to work towards a fixed price in your bid?
Have you ever lost a bid and wondered what you would have had to do to get the job?
Measure can help in both situations with the introduction of Fixed Subtotals and Fixed Grand Totals in Measure 2012*.
Simply click the green pencil icon to the right of the subtotal you want to change. Then use the dialog box to enter the fixed subtotal you want.
If you compare the before and after images you will see the change is accomplished by calculating a margin that sets your adjusted price to one that will match your selected subtotal. Notice that sales tax is taken into consideration when computing the adjusted price.
[box type="info"]Note that when using this feature we recommend that you show either the quantity or the adjusted price in your quote, but not both. This feature requires the use of an adjusted price with more than two digits of precision. So, if the customer were to “check your math” using a pocket calculator, quantity × price would not necessarily equal the subtotal since they are not being shown the full number of digits after the decimal point. This is unavoidable; the same thing would happen if you tried this in Excel.[/box]
More things to know:
- The fixed subtotal will be maintained even if the job changes. If more or less material is used on the job the margin and adjusted price will be adjusted to maintain the fixed subtotal.
- This feature can also be used at the Grand Total level.
The technique can also be used the other way around. After a job is bid, the final price can be entered. This would have the result of showing you your margin with the selected price. This might be useful if you tweaked your proposal numbers outside of Measure, or even if you lost the bid and wanted to see what your margin would have been (and want to assure yourself the other guy isn’t going to make any money on his lowball bid!)
This is just one of the great new features in Measure 2012!
* Feature available in Designer and Premier Editions