The pricing formula allows you to specify the following inputs:
Gross Margin Target (%) - The percentage of the FlexJob selling price that you want to be leftover as your Gross Profit. This is calculated by taking all the costs of the FlexJob and using the "divisor method" to achieve a price that results in your target gross profit.
Tax Paid (%) - The tax rate on products you purchase. This will markup the product cost by the tax percentage.
Base Cost ($) - This allows you to have a baseline cost across all jobs so that you can account for standard, base costs that are incurred on any job.
Labor Hourly Cost ($) - Each individual FlexJob can be defined by a number of expected labor hours. This field allows you to set the desired labor rate to be used in this calculation and is typically the full burdened labor rate.
There is always a default FlexJob pricing strategy available, which will be applied to all FlexJobs unless there is an override based on category.
The Default pricing strategy cannot be removed.
You can also create additional strategies for a given category of FlexJob, as illustrated in this example:
This allows you to have different gross margin, labor, tax, and base cost factors based on the different types of work that you do.
For instance, your target Gross Margin on an HVAC Service & Repair job may be completely different from the HVAC Replacement business.
Using the Category Pricing Strategies is optional. If you don't define a category strategy, the system will rely on the Default Pricing formula.