Margins are an important measurement tool to determine whether products are profitable, and by how much.
Brightpearl has a report which allows you to compare a cost price to a sell price to see what the margins and markups are. It is a tool to allow you to make plans regarding pricing.
The report is found under Reports > Products > Margin report.
Once in the report, click 'Show filter' to select your 'buy' price list and your 'sell' price list. You can also filter for just a subsection of products, using the search box, the brand, category, type, vendor (supplier), or product status:
When you click 'Filter', you will see a report listing all of your products and their prices on the selected price lists.
There are also two additional columns: 'Margin' and 'Markup', which are automatically calculated.
Margin is how much profit is being made as a percentage of the sales price. The calculation is:
Margin % = [(Sale price - Cost price) ÷ Sale price] × 100
In the above example, 15 - 10 = 5, and 5 is 33.33% of 15.
Markup is how much more the selling price is than the cost price. The calculation is:
Markup = Sale price ÷ Cost price
In the above example, 15 divided by 10 is 1.5.
Note: The purpose of this report is for planning and forecasting - the buy and sell prices may not reflect what the items actually cost or were sold at! For historical data, refer to your sales report or the income statement (profit and loss report).