Products, pricing and profitability in finance

The Products & Profitability page of the finance department shows how much each product really brings in. It has three tabs: Products (prices, direct costs and profit per product), Pricing (is the price right) and Profitability (which product really earns and which needs a rethink).

Add products

In the Products tab, under "Your products", click Add product. "Add products with Ido" opens: paste a link to the product's page or describe it in words, and Ido fills in the details. A price Ido reads from a web page is never saved on its own - he asks whether that is the price you charge, and you can answer No fixed price. Prefer a form? Click Fill in a form instead. The conversation with Ido uses credits according to usage.

In the "Add a new product" form fill in a name and category, and in the financial details Product price (₪), Direct cost per unit (₪) (supplier, raw materials, shipping, card fees), Monthly capacity (units) and Strategic role (entry product, core product, upsell or premium).

Read the products list

Each product shows its price, direct cost, gross profit, estimated managerial profit and a status: profitable, thin margin, losing money on every sale, below break-even after expenses, gross profit only when expenses are missing, or missing price or cost. You can edit price, direct cost and capacity right in the row.

Understand how VAT enters prices

How VAT works depends on the business type, set in the finance settings or in the interview with Ido:

• Exempt dealer - no VAT, and the price you charge is the full revenue.
• Licensed dealer - for each product you choose whether the price is Excl. VAT or Incl. VAT, and under the price you see what the customer pays and the revenue before VAT. Pricing and profitability are always calculated on revenue before VAT, because VAT goes to the state and is not profit.

The VAT rate is Israel's VAT rate, the same for every business, so there is nothing to set. You can see it in the finance Settings.

Check the price in the Pricing tab

In the Pricing tab ("Pricing window") set a Target managerial margin in percent, and for each product you get the Break-even price - the price that covers the direct cost and the product's share of business expenses, with zero profit - then a Recommended price range, a price that reaches the target, and a Pricing recommendation explaining what it is based on.

Compare products in the Profitability tab

In the Profitability tab ("Product profitability") each product shows monthly revenue, direct cost, allocated indirect costs (by the product's share of revenue), gross profit, estimated managerial profit and margin, and a Recommended action: promote, reprice, cut cost, check demand, freeze or stop. Products missing data are listed separately, as excluded from the comparison because data is missing.