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Made2Manage ERP ROI: Accurate Pricing/Job Costs
Fact: More accurate pricing will lead to higher and more predictable margins.
- Actual costs are analyzed in real time and may be reused to create quotes and orders.
- Pricing and margins are analyzed by virtually any measure, including by part, customer, sales rep, product type, and more.
- Costs can quickly be built into a quote or sales order so you can more easily align the price of your products with expected profit margin levels.
- Product costs and resulting prices are generated based on accurate bill of material and routing structures using input from your customer.
Net Benefit: Increased profit margins (annual) = $12,000 - $20,000
Logic: Although more difficult to quantify, a $5 million company may easily improve their margins by 3-5 percent. Based on average net profit margins of 8 percent, the net return to the business can be $12,000 - $20,000 annually.
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