The purpose of this article is just to give you a quick overview of the Material Catalog within your Item Catalog.
Subcontracting Catalog Information
- Enter your Subcontractors that you use regularly here. LMN will calculate your costs for subs to include all costs as well as your overhead recovery markup and profit margin from your budget.
- Your Default Budget, Overhead Recovery % and Profit Margin will be featured at the top of the page.
- To add a new Subcontractor, click the +New button.
- Sub Name: The name of the subcontractor or subcontractor type
- Units: The units (e.g. hours, square feet, lin. ft, flat price) by which the subcontractor charges you. Enter Flat Price if the subcontractor charges you a custom price for every job, and then leave Unit Cost as $0.00.
- Description: Optional. Here you can add notes about the subcontractor that would show up on client proposals if you listed the subcontractor items (uncommon, but possible).
- Internal Notes: Internal notes about the subcontractor that would only appear on Job Planner Reports.
- Round to Nearest: Used by Work Area Templates, this rounds the subcontractor 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 subcontractor (can be changed on any estimate). If the subcontractor charges you a custom flat rate specific to each job,set the Unit Cost to $0.00. This will then show up in red on estimates, reminding you that you need to update this.
- 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.
- Overhead Markup: This number comes direct from the budget you are using and will change as you switch your default budgets. This number is how LMN needs to markup your material costs to recover labor's share of your company's overhead. For more information on Overhead Recovery, click HERE! This may be indicated as 0% if you're using the Field Labor Hour overhead recovery method.
- Breakeven: This rate covers the costs of subs, plus 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.
- 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.