Summary: The Factor column in your RoofSnap Materials settings is the multiplier that increases your costs to the total price you are charging, accounting for your profit margin.
When accessing Materials in the Detailed View (https://www.roofsnap.com/Materials#/Materials/), you will see columns for Coverage, Labor Cost, Material Cost, Factor, and Total.
The Factor column is the markup multiplier that amplifies your costs to get to the Total price per unit that you are charging your customer for a given item.
Profit margin and markup factor show two different aspects of the same transaction but they are not the same figure.
Profit margin compares profit to an item's sales price.
The markup factor compares profit to the item's costs.
Gross Profit Margin = Gross Profit / Revenue (Total Sale Price)
Markup Factor = Gross Profit / Cost (Sum of Labor & Material Columns in RoofSnap)
Thus to achieve a 35% margin, your markup factor multiplier is NOT 1.35, but is in fact 1.54.
The two terms are not a direct math correlation.
Example:
Let's use the Box Vent (EA) item highlighted below as an example.
This item has a cost of $10 ea. If we wish to achieve a 35% profit margin, we set the factor to 1.54.
This makes the total charge price per unit $15.40.
The profit is the difference between the cost ($10) and the sale price ($15.40, the total column), which in this case is $5.40.
$5.40 (Profit) / $15.40 (Total Sale Price) = 0.35 (Gross Profit Margin)
$5.40 (Profit) / $10 (Cost) = 0.54 (Markup Factor)
If the factor is set to 1.00, your total charge price will be equal to your costs, and you would not be making any profit on the item.
Utilize the tables below to find the factor multiplier that corresponds to your desired gross profit margin.
Gross Profit Margin to Factor Conversion Tables
| Desired G.P. % | Factor | Desired G.P. % | Factor | Desired G.P. % | Factor | Desired G.P. % | Factor |
| 1% | 1.01 | 10% | 1.11 | 19% | 1.23 | 28% | 1.39 |
| 2% | 1.02 | 11% | 1.12 | 20% | 1.25 | 29% | 1.41 |
| 3% | 1.03 | 12% | 1.13 | 21% | 1.26 | 30% | 1.43 |
| 4% | 1.04 | 13% | 1.15 | 22% | 1.28 | 31% | 1.45 |
| 5% | 1.05 | 14% | 1.16 | 23% | 1.30 | 32% | 1.47 |
| 6% | 1.06 | 15% | 1.17 | 24% | 1.31 | 33% | 1.49 |
| 7% | 1.07 | 16% | 1.19 | 25% | 1.33 | 34% | 1.51 |
| 8% | 1.09 | 17% | 1.20 | 26% | 1.35 | 35% | 1.55 |
| 9% | 1.10 | 18% | 1.22 | 27% | 1.37 | 36% |
1.56 |
| Desired G.P. % | Factor | Desired G.P. % | Factor | Desired G.P. % | Factor | Desired G.P. % | Factor |
| 37% | 1.59 | 46% | 1.86 | 55% | 2.24 | 64% | 2.77 |
| 38% | 1.61 | 47% | 1.89 | 56% | 2.27 | 65% | 2.85 |
| 39% | 1.64 | 48% | 1.92 | 57% | 2.33 | 66% | 2.94 |
| 40% | 1.67 | 49% | 1.96 | 58% | 2.38 | 67% | 3.03 |
| 41% | 1.70 | 50% | 2.00 | 59% | 2.44 | 68% | 3.12 |
| 42% | 1.72 | 51% | 2.04 | 60% | 2.50 | 69% | 3.22 |
| 43% | 1.75 | 52% | 2.08 | 61% | 2.54 | 70% | 3.35 |
| 44% | 1.79 | 53% | 2.13 | 62% | 2.60 | 71% | 3.45 |
| 45% | 1.82 | 54% | 2.17 | 63% | 2.67 | 72% | 3.57 |
| Desired G.P. % | Factor | Desired G.P. % | Factor |
| 73% | 1.59 | 82% | 1.86 |
| 74% | 1.61 | 83% | 1.89 |
| 75% | 1.64 | 84% | 1.92 |
| 76% | 1.67 | 85% | 1.96 |
| 77% | 1.70 | 86% | 2.00 |
| 78% | 1.72 | 87% | 2.04 |
| 79% | 1.75 | 88% | 2.08 |
| 80% | 1.79 | 89% | 2.13 |
| 81% | 1.82 | 90% | 2.17 |