A common question we get from folks is why is my margin not calculating at the percentage I have instructed the program.

If you look in your included services you will notice that you may have costs that you are telling the system to “not margin”. Those costs going through not margined can affect the dollars showing in the gross profit row. If you want these to line up you will need to check the margin box in the included services area.

Some dealers attach the margin to those included services as a “selling price”.

The cogs is made up of two calculations.

The costs you want margined and the costs you don’t want margined. Then the selling price is calculated off of the desired margined COG’s divided by (1-__%) + undesired margined COG’s to come up with a selling price.

After this is calculated then we add sales commission and the buydown rate.

It is imperative when you uncheck the margin box in the included services area that you have added the desired margin you wish to capture. Keep in mind the program can’t capture this margin since it is calculated by the user outside of the program.

It is a very complex formula. But trust that it is right. The only thing we have zero control over is un-margined “included services”.