This article explains how to configure your company's pricing rules, known as "Price Drivers," to ensure profitability. You'll learn how to set tax rates, markup percentages, labor rates, overhead, and commission tiers.
Step-by-Step Instructions
Navigate to Pricing: In your SetSale dashboard, find the Settings menu and select Pricing.
Configure Core Pricing Rules:
Tax Rate: Enter your company's standard tax rate.
Overhead: Enter your company's overhead percentage.
True Labor Costs: Input the hourly labor rates for your installers. You can also set default labor hours for a job, which can be adjusted on a per-quote basis.
Target Net Profit Health Threshold: Define a target net profit percentage (e.g., 20%) to guide your pricing strategy.
Markup: Set the markup percentage you want to apply to your equipment and services. Users can also add additional rules to ensure their equipment and labor is marked up the way they need it!
Set Up Commission Tiers:
Access the Commissions section.
Create different commission tiers, such as
Platinum, Gold, and Silver, to encourage sales of higher-efficiency systems.
You can also set commissions for individual users.
Add Discounts
Add either flat dollar amount discounts or percentage discounts for your technicians to access
Add Rebates
Add Rebates into the system. Rebates can either be instant rebates, which will detract from the total customer cost on a quote, or mail-in rebates, which will appear on quotes but will not impact pricing.
That's it! Once those pieces are added to the system, you can rest assured knowing that your pricing is accounting for all of the things you need!
Troubleshooting
My pricing isn't calculating correctly. Double-check that all your Price Drivers (tax, markup, labor, overhead) have been entered accurately. If the issue persists, contact [email protected] for assistance.