In the main screen of Summary HeavyBid calculates profit using Markup which is a percentage of cost. This will never change but there are ways to see and even calculate profit using Margin which is the percentage of the price. I have finally decided on a naming convention and I suggest you do also in your company. Everybody should be on the same page when it comes to calculating profit. <\/p>\n\n\n\n
I did a video on this subject so companies that do want to calculate profit using Margin can see the options available in HeavyBid. <\/p>\n\n\n\n
LINK<\/a><\/p>\n\n\n\n Moving forward I will be referring in my blog profit using the following definitions:<\/p>\n\n\n\n Profit – The difference between Price and Cost in dollars. This is not a percentage. In my opinion, this should not be blended in with company overhead. This should match what the accounting group defines as profit. <\/p>\n\n\n\n Margin – expressed as a percentage. It is Profit ($) divided by Price x 100. <\/p>\n\n\n\n Markup – expressed as a percentage. It is Profit ($) divided by Cost x 100. <\/p>\n\n\n\n Here is the spreadsheet that can be used to calculate Margin from Markup and vice versa. LINK<\/a><\/p>\n\n\n\n