When creating and building the estimate today, there are several areas where you can review the gross profit of your estimate prior to sending it out to your customers. This will ensure you're estimates are profitable for your business.
In this article, we will go over ways to track your gross profit in the estimate:
Job Profitability
In the attachment, we have the technician assigned (Aaron Gregg). In his employee profile, we pay him $50 flat rate. 
Gross Profit Percentage (GP% )
Calculated by [(Retail - Cost - Discount)/(Retail - Discount)] * 100
In this example attached:
- Retail is $30 + $25 + $69 = $124
- Cost is $15 for the 0.3 hour Aaron is working + $52.94 part cost ($17.61 + $5.12*6.9 = $52.94)
- Discount is $0
GP% for this job would be [(124 - 67.94 - 0)/(124 - 0)] * 100 = 45.21%
Gross Profit Dollar (GP$)
Calculated by (Retail - Cost - Discount)
In this example attached:
- Retail is $30 + $25 + $69 = $124
- Cost is $15 for the 0.3 hour Aaron is working + $52.94 part cost ($17.61 + $5.12*6.9 = $52.94)
- Discount is $0
GP$ for this job would be (124 - 67.94 - 0) = $56.06
Gross Profit Dollar per Hour (GP/Hr)
Calculated by (Retail - Cost - Discount)/(Number of Hours)
In this example attached:
- Retail is $30 + $25 + $69 = $124
- Cost is $15 for the 0.3 hour Aaron is working + $52.94 part cost ($17.61 + $5.12*6.9 = $52.94)
- Discount is $0
- Hours on job is 0.3
GP$ for this job would be (124 - 67.94 - 0)/(0.3 hr) = $186.87/hr
Sublet Profitability
In the attachment, we have a sublet built out to quote the customer.
Gross Profit Percentage (GP% )
Calculated by [(Retail - Cost - Discount)/(Retail - Discount)] * 100
In this example attached:
- Retail is $150
- Cost is $100 that we need to pay out to Joe's Towing Service
- Discount is $0
GP% for this job would be [(150 - 100 - 0)/(150 - 0)] * 100 = 33.33%
Gross Profit Dollar (GP$)
Calculated by (Retail - Cost - Discount)
In this example attached:
- Retail is $150
- Cost is $100 that we need to pay out to Joe's Towing Service
- Discount is $0
GP$ for this job would be (150 - 100 - 0) = $50.00
Gross Profit Dollar per Hour (GP/Hr)
Calculated by (Retail - Cost - Discount)/(Number of Hours)
Since sublet work is contracted to be outside of the shop, there are no hours on the sublet to track; therefore, we do not display GP/Hr for sublet jobs.
Total Estimate Profitability
While service writers are building jobs on the estimate, they'll be able to track the GP% and GP/Hr of the RO at the bottom of the estimate (see screenshot below).
The service writer can also click into the icon located next to GP% if they'd like a more detailed review on the gross profit of the estimate. A modal will appear with details about labor, part, and sublet profit.
Profitability Analysis FAQs
Do taxes and fees calculate in the profitability? No they do not.
Do RO level fees calculate on the Profitability Analysis? No, however, they will on the RO GP.
Why am I seeing a negative amount in my profitability analysis? Please ensure that the discounts are not creating a negative amount. Packaged pricing can contribute to