Aluminus articles

Is your profit margin correct, or does it only look that way?

A sale can look profitable because its price covers the main material.

Is your profit margin correct, or does it only look that way?

A sale can look profitable because its price covers the main material. The actual margin depends on everything involved in delivery: profiles, hardware, glass, labor, installation, freight, taxes, waste and operating expenses.

Start with complete costs

List window or door components and planned services. Separate direct costs from expenses allocated across sales. Without this view, markup may conceal a lower margin than expected.

Do not confuse margin and markup

Markup is a factor applied to cost. Margin is the percentage remaining in the selling price after costs. Confusing them leads to prices that look consistent but fail to deliver the planned result.

Review terms and scenarios

Deadlines, payment methods, urgency, installation and design changes can affect costs. Review these before sending the proposal and record the assumptions supporting the price.

Make review routine

An updated cost library and a quote showing its composition make discussions more objective. Aluminus connects calculations, costs and proposals to support this review.