Money
True cost and margins
Amina buys a dress for KES 1,000 and sells it for 1,300. She thinks she makes 300. But rent, power and her assistant's wage eat about 15% of what she sells, so she really makes about 105, and 150 off loses her money. True cost shows it.
Open your name → Owner's controls → Costs & margins (owner or manager):
- Running costs: worked out from the last three full months of your books as a share of sales, or a fixed percentage you type. Work it out again refreshes it.
- Target margin (15% to start) and minimum margin (0% to start).
| On each product | Meaning |
|---|---|
| Landed cost | What it cost you, transport and clearing included |
| + Running costs | Its share of rent, wages and power |
| = Full cost | What it really costs to sell |
| True profit | Price less full cost, with the margin |
| Label | Green makes money · Yellow barely breaks even · Red loses money |
| Lowest till price | Full cost plus the minimum margin, or the product's Minimum price if higher; never above its own price |
Below the lowest till price the till asks for approval. Reports → Sales → True profit per product shows each product's sales, discounts, costs, true profit and label, biggest loser first, and how much of your discounts went below cost.