Profit with Measure

Measure has long had a feature called margin which allows you to figure a selling price in the worksheet that includes a percentage you want to make on the sale. For example, in the worksheet below a 20% margin has been added to the job. This brings the price up to $5.31/SF.

Worksheet example 1
Worksheet example 1

But where did that original cost of $4.25 come from? If it was from the manufacturer’s catalog, you may have a problem. Many dealers forget to include the cost of freight and overhead into their margin calculations. Typical values would bring the true margin of this estimate down to 15% or less.

The Designer and Premier editions of Measure 2012 introduce a new feature to address this. On the Options dialog a overhead % can be supplied.

Specify overhead
Specify overhead

Similarly, the product list now has a  freight column. The example below says that this product incurs a freight cost of $0.05 per SF.

Specify freight
Specify freight

When these additional elements are specified they will be taken into consideration when computing the margin. With the values shown above, the sample worksheet now looks like this:

Result worksheet example
Result worksheet example

Notice the effective cost column which shows how the overhead and freight are affecting the starting cost of the item.  (Note that overhead is applied to freight in addition to the unit price.)

Measure 2012 just saved this contractor from a $451.44 mistake. That’s certainly worth the price of an upgrade!