Cost Analysis Group 4 - Net Change and Gross Margin

Equipment, Accessory, Add-On, and Material subtotal rows follow each quoted option. (Fig. 1)

Net Change and Price Realization calculations are provided for the equipment, accessory, add-ons, materials subtotals, and the quote total. (Table 1)

• NC % - The Net Change % indicates the percent increase or decrease between the List and Final Price.
• PR %  - Price Realization % indicates the percentage of List Price that was quoted as the Final Price.
• For accessories/add-ons quoted at regular price (no equipment), or materials typed in by the user with a price, there may be a positive number, causing price realization to be over 100%

Gross Margin (GM) Calculations are provided for all subtotal and total rows. GM is presented in two different ways. When a business rule price adjustment is treated as PROFIT - use the Gross Margin WITH Price Adjustment values. When a business rule price adjustment is treated as COST - use the Gross Margin without price adjustment values. 

Gross Margin without Pricing Adjustments %. (GM w/o Price Adj. %): Business Rule price adjustments are treated as costs and are included in the COGS. For example, when a business rule price adjustment for Commission is considered a cost it is included in the COGS. (Table 2.)

Gross Margin without Pricing Adjustment $ (GM w/o Price Adjustment $): Business Rule price adjustments are treated as costs and are included in the COGS. For example, a business rule price adjustment for Commission is considered a cost it is included in the COGS. (Table 2.)

Gross Margin WITH Price Adjustment % (GM w Price Adj %): - Business Rule price adjustments are treated as Profit.  For example, when the business rule price adjustment for the commission is treated as profit the commission is NOT included in the COGS. (Table 3)

Gross Margin WITH Price Adjustment $ (GM w Price Adj $): - Business Rule price adjustments are treated as Profit.  For example, when the business rule price adjustment for the commission is treated as profit the commission is NOT included in the COGS. (Table 3)

Figure 1. Gross Margin $ and %.

Table 1. Net Change and Price Realizations  Option 1 Equipment Subtotal Row 61
Equipment Subtotal Final Price	$11,256.00
Equipment Subtotal List Price	11,506.00
Net Change	- 250
Net Change Percentage (($NC / List Price) * 100)	- 2.2 %
Price Realization (100% + NC%)	97.8%

Table 2. GM without Price Adjustments  Option 1 Equipment Subtotal Row 61
Final COGS	Total Finance Fee (AD) + Total COGS (P) + Total Business Rule Price Adjustment (S)	$ 7641.01
Margin $	Total Price (AB) - Final COGS	3614.89
GM %	(1-(Final COGS/(Final COGS+GM$)))*100	32.1 %

Table 3. GM with Price Adjustments  Option 1 Equipment Subtotal Row 61
Final COGS	Total COGS (P) + Total Finance Fee (AD)	$ 6977.79
GM $	Total Price (AB) - Final COGS	4389.21
GM %	(1-(Final COGS/(Final COGS+GM$)))*100	38.61 %

Group 3 - Pricing Adjustments, Discounts and Finance Fees

More Cost Analysis resources: How is GM calculated when Cash Price is entered in the price book? What if Regular Price is entered for an accy or add-on? How is GM calculated when "Call for Price" is used? What if a price adjustment is made to a material?