faq raw material cost total material cost Price List: What is the difference between Raw Material Costs and Total Material Costs?

When running estimate reports you may see raw material costs and total/loaded material costs. When you set up a material item you will notice a shipping factor, warranty factor and a purchasing tax option. These are not mandatory for setting up a material item, although it may be necessary for certain types of materials.

  • Shipping factor: this is used if your vendor has some sort of shipping cost on top of their raw material cost.
  • Warranty factor: generally used for softscape materials such as plants and trees. It is building in a markup to take into consideration the likelihood of having to replace some of those materials. In cased like hardscaping stone, salt for de-icing, gravel, etc... you would not need a warranty factor (or it will be very small) since these types of materials will not break/die and need to be replaced.
  • Purchasing tax: this is only used if you pay a tax when you purchase materials from your vendor.

Raw material costs: the cost of your materials before the shipping factor, warranty factor and purchasing tax are included.

Total material costs: the cost of your materials after the shipping factor, warranty factor and purchasing tax have been added to the raw material cost.

 

 

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