This video will guide you through the process of setting up other items (e.g. rentals, permits, etc.) for estimating.
In this video you will learn:
- How to add other items to your other catalog
- How to customize your profit margins on other items
- How to customize your pricing on other items
- Why there is no overhead recovery on other items
Setting Up Your Other Catalog
The purpose of this article is just to give you a quick overview of the Other Catalog within your Item Catalog.
- The other catalog is for anything that doesn't fit well into the categories of Labor, Equipment, Materials, or Subs.
- The unique thing about the other catalog is that is has no overhead markup. Items in the other catalog take the cost and add a profit margin, but no overhead recovery. This makes it useful for items like Equipment Rentals (where the rental vendor carries all the overhead burden of owning/maintaining the equipment), but also for things like Discounts and Rounding Factors which we'll touch on later.
- Your Default Budget and Profit Margin will be featured at the top of the page.
- To add a new item to your Other Catalog, click +New.
- Other Name: The name of the item.
- Units: The units (e.g. hours, square feet, lin. ft) by which you charge.
- Description: Optional. Notes about the other item that would show up on client proposals if you listed the item details on the proposal.
- Internal Notes: Internal notes about the other item that would only appear on Job Planner Reports.
- Round to Nearest: Used by Work Area Templates, this rounds the other item's quantity to the nearest rounding factor.
- Sales Tax: This will be pre-populated from your Default Tax selections. If you have not already setup your Default Taxes, we highly recommend you do this before proceeding with Estimating. Please click HERE for more information.
Cost + Breakeven Calculator
- Unit Cost: the default cost per unit for this other item (can be changed on any estimate).
- Purchasing Tax: This will be pre-populated from your Default Tax selections. If you have not already setup your Default Taxes, we highly recommend you do this before proceeding with Estimating. Please click HERE for more information.
- Breakeven: This rate covers the costs of subs, plus overhead. Remember, other itemsdo not recover overhead.
The price calculator has three different settings you can use to calculate the billable rate you need to charge for materials.
- Use Profit Margin from Budget: This is the default setting. LMN will use the budget you've selected and pull the desired net profit margin from the budget. This is the rate that's designed to help you hit the sales goal you set in your budget.
- Set a Custom Profit Margin: Select this option if you want to force LMN to ignore your budget and use a custom profit margin. Please note: if you are unhappy with the Profit Margin indicated in your budget, it would be easier to adjust it in the budget then to set a Custom Profit Margin for each item in your catalog. For more information on increasing your Profit Margin, click HERE.
- In some circumstances (such as Discounts or Rounding Factors), you must set Other Item's profit margins to 0%. For information on setting up Discount or Rounding Factors, click HERE.
- Set a Custom Price: Select this option if you want to force LMN to use a specific billable rate. Once you customize your billing rate, LMN will automatically calculate, and show you, what your net profit margin is a that rate.