The purpose of this article is just to give you a quick overview of the Material Catalog within your Item Catalog.
Material Catalog Information
- You will enter all of your materials for your jobs in the Material Catalog prior to building estimates. LMN will calculate your costs for materials 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.
- The recommended and easiest way to build your Material Catalog is to get list from your vendor(s) and import that list into LMN directly. For more information on Importing your Materials, click HERE.
- For information on Managing Materials, click HERE.
- If you'd prefer to add your materials manually, follow the instructions below.
Entering Materials Manually
- Click the +New button.
- Material Name: Enter the name of your material here. We suggest keeping your Material names consistent so that anyone at your company can find materials quickly and easily, even years down the road. (ie. Sand - Brick Sand, Sand - Concrete Sand, Sand - Sweeping Sand, Cedar - 1" x 6" x 8', Cedar - 1" x 6" x 10', Cedar - 1" x 6" x 12', etc.).
- Size: Enter your material size.
- Units: Enter the units your material is purchased in (ie. Tons, Each, Pallet, etc.).
- Type: Choose the material to be either a Hardscape or a Softscape item.
- SKU: Ask your vendors for an item number or sku number along with the list of materials. Then when you update your material costs each year, it is easy to upload the new list with the updated prices into LMN with that corresponding ID.
- Round to the Nearest: Used by Work Area Templates, this rounds the material quantity to the nearest rounding factor.
- Description: A description of the material.
- Internal Notes: Will be included on Job Planners.
- 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 cost-per-unit your company pays to purchase the material.
- Shipping Factor: If your vendors charge you for delivery then build that into your material pricing.
- Warranty Factor: This factor is to take into consideration that some materials will die/fail and need to be replaced. This will depend on the material. Plants will have a higher warranty factor. If a material has a high warranty factor you may want to increase the profit margin as well.
- 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 materials, 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.
- To assign a category to your material, click on the Cateories tab for your material.
- Select the category you wish to assign to the material and click OK.