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Case Study: Calculating company profitability with Salesforce

“We need to know our exact profit figures of everything we sell. Services, products, everything.”

“No problem,” I said. “Tell me about your costs for these products. Are they a percentage of each product and service? Are they set amounts?”

“More like a bit of everything. Actually, some are set, others are a fixed cost, some change depending on the amount purchased, and others change from purchase to purchase.”


Bottom line, they had multiple layers of complexity when it came to computing how much they would make on a given sale. The traditional formula of the Sales Price – Cost simply wasn’t going to be accurate.

These are the moments when Salesforce stands above the rest. Sure, an off the shelf product could work for 90% of their sales. But what about that other 10%? The ones with cost structures specific to them? That’s when a custom solution shines.


So we wrote an algorithm in a formula field in Salesforce. Doing so gives you the ability to create nested rules based on the product type, quantity, sales price, or any other variables you have to work with. Each sale, regardless of what it is, now gives them the exact metrics they need.

With precise cost reporting, they can determine their margins in real time. At any given moment, they can view their profitability, rep commissions, or general margins on everything they sell by clicking a button.

Have you configured your CRM to give you accurate profitability reporting?

Andrew Dunlap