You can get a quick visual check of the Cost of Goods (COG) used in any frame job. At the bottom left corner of the work order screen, your cost of goods is displayed in light grey text above UI= when FrameReady is opened with levels 2 – 4. It appears without a dollar sign so that customers are unaware of what this number represents.
To get a breakdown of cost for each item on a work order, Find that one work order, then go to the top of the screen and select from the menu bar Reports > Cost for Found Set.
Or, Click on the Print Documents side bar button on the left side, and select the Wholesale Costs button.* Remember, this will give you a cost report for ALL of the records in your found set. So, if you only want the report for one order, make sure that it is the only one showing in your list view or that your found set is “1 of 1”.
The cost report calculates the cost of the portion of matboard or glass you will use; rounded up to 1/4, 1/2 or a whole sheet/lite.
To ensure accuracy, make sure that you have entered in the wholesale cost of items in your Price Codes file. E.g. glass, mounting, hardware. Otherwise, the cost % will be zero and your wholesale amount will appear lower than it actually is.
The waste factor is set in the Main Menu > Work Orders > Options tab > More Options tab > General tab > Waste factor when calculating cost. It increases the Wholesale cost by the percentage entered. Waste is only applied to moulding.
Check your cost percentage and aim to have it below 30%. When your selling price is too close to your purchasing price, the percentage is high.
A general rule is that the retail price displayed in the upper right hand section of the work order is 3 x the COG. (If your overhead is high, this multiplier should be higher too.)
Seeing the COG displayed is helpful if you are donating a frame job to charity or discounting the frame job. It gives you a quick reference so that you know your profit margin and how much leaway you have.
*You can also see the retail price and wholesale cost in the Work Order Summary of Sales by Category Report.