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How is the System Number calculated?

Last revised:
Friday, 30 July 2010

Answer

The information presented here is current for ShedTech versions 2.03 and earlier. You should also check the Profit Margins FAQ for related information.

The system number is an amount calculated by ShedTech to show the total of all your expenses for a quote and also the profit (that ShedTech knows about). The system number is a combination of all costs in the job and is not used to calculate your profit margin. You can not just multiply the system number by your profit margin and calculate the quote price. Margins are calculated on the total kit price only which is one component of the system number.

NB: Both the job cost and profit amount shown in the system number contain GST.

The purpose of the system number is to provide you with a basic understanding of the bottom line, so that you can discount the quoted price to be competitive without going into the red.

The system number is a total of the following:

  • The kit price of all components in the shed and any additional parts (A),
  • Any local construction costs, that you may have specified (B),
  • Any slab costs, if you are doing a Supply, Erect & Slab quote (C),
  • A delivery fee (D)
  • The ShedTech software fee (E),
  • An engineering fee (F),
  • A consolidation fee (G); and
  • An administration fee (H)
The second part of the system number shows the amount of calculated profit in the job which is calculated by multiplying your profit margin against the total of the kit price (A) only.

The system number does not include :

  • Your erection component of the kit

The amounts for the Delivery fee (D), ShedTech fee (E) , Engineering fee (F) , Consolidation fee (G) and Administration fee (H) can not be adjusted by you and are automatically calculated based on the total of the kit price only (A).

If you are making a margin on any local construction costs or the price of the slab, ShedTech is unaware of these profits and so adds the full specified amount of these into the system number.

 

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