Direct Margin Report
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 |
|---|---|
| Actual Close Date From / To | Filter by when projects were won |
| Salesperson | Filter by sales rep |
| Department | Filter by department |
| Division | Show only the selected divisions (opportunity types). Nothing selected = all divisions. |
| Function | Show only divisions with the selected function classification (Operational, Internal). |
| Work Type | Show only divisions with the selected work type (Full Project, Service, Warranty, Evaluation, Non-Billable). |
The Division, Function, and Work Type filters appear only for companies that classify their divisions (using more than one function or work type). See Divisions for how these classifications are configured.
The three filters are combined: a project is included only when it matches every filter at once. For example, selecting the Handyman (Internal) and Design Build (Operational) divisions together with the Internal function shows Handyman only — it is the sole division that satisfies both.
Leaving a filter blank places no restriction on that dimension, so it reads as "All". Selecting Internal for Function with Division and Work Type blank gives the entire Internal compartment.
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