Direct Margin Report
Filtered Data
This report is filtered based on your division settings:
- Function: Operational
- Work Type: Full Project
Analyze gross profit margins on sold projects to understand profitability by salesperson, project type, and time period.
Accessing the Report
Reports > Sales > Direct Margin submenu:
- Direct Margin Report - Actual margins on completed/in-progress projects
- Estimated Direct Margin - Projected margins on recently sold projects
Key Metrics
| Metric | Description |
|---|---|
| Sold Amount | Contract value |
| Estimated Cost | Budgeted project cost |
| Direct Margin ($) | Sold Amount - Estimated Cost |
| Direct Margin (%) | Margin ÷ Sold Amount × 100 |
Calculation
Direct Margin = Contract Value - Direct Costs
Direct Margin % = (Direct Margin ÷ Contract Value) × 100
What's Included in Direct Costs
- Labor costs (estimated or actual)
- Material costs
- Subcontractor costs
- Other direct project costs
What's NOT Included
- Overhead
- General & Administrative
- Sales commissions (typically)
Available Filters
| Filter | Description |
|---|---|
| Date Range | Close date or start date |
| Salesperson | Filter by rep |
| Division | Project category |
Report Views
Estimated Direct Margin
Shows projected margins based on estimates:
- Used for recently sold projects
- Based on estimated costs at time of sale
- May differ from actual results
Actual Direct Margin
Shows true margins based on costs incurred:
- For completed or in-progress projects
- Based on actual labor, materials, POs
- Most accurate profitability view
Report Columns
| Column | Description |
|---|---|
| Project | Project name (linked) |
| Client | Customer name |
| Salesperson | Who sold it |
| Sold Amount | Contract value |
| Cost | Estimated or actual cost |
| Margin $ | Dollar profit |
| Margin % | Percentage profit |
Analyzing Margins
Healthy Margin Ranges
| Project Type | Target Margin % |
|---|---|
| Small projects | 35-45% |
| Medium projects | 30-40% |
| Large projects | 25-35% |
Targets vary by company strategy and market.
Low Margin Causes
- Aggressive pricing to win
- Cost overruns
- Scope creep
- Underestimated complexity
- Material price changes
High Margin Opportunities
- Premium positioning
- Accurate estimating
- Efficient execution
- Value engineering
Salesperson Analysis
Compare margins by rep to identify:
- Who sells profitable work
- Training needs for pricing
- Territory/market differences
- Negotiation skill levels
| Salesperson | Avg Margin | Analysis |
|---|---|---|
| Rep A | 42% | Strong pricing, may be losing some deals |
| Rep B | 28% | May be discounting too much |
| Rep C | 35% | Right in target range |
Export Options
Click Export CSV for:
- Profitability analysis
- Pricing strategy review
- Commission calculations (if margin-based)
Common Use Cases
- Pricing validation: Are we selling at right margins?
- Estimating accuracy: Do actual margins match estimates?
- Sales coaching: Help reps price correctly
- Strategic planning: Which project types are most profitable?
Tips
- Compare estimated vs. actual margins to improve estimating
- Low margin on high volume may be acceptable strategy
- Consider project complexity when comparing margins
- Track margin trends over time
Related Reports
- Sales Summary - Total revenue view
- Cost Controls - Cost tracking detail
- WIP Report - Current project margins