Articles on: Cost Settings

How to set up and manage Custom Costs

Custom Costs is a feature for you to add more costs to TrueProfit manually. As a seller on Shopify, there might be many different kinds of costs that incur in your store, for example Shopify subscription, KOL/influencers, or even Ad Agencies costs. Basically, any costs that don’t fall into other existing categories in TrueProfit can be created and customized in the Custom Costs feature.

In this article:

How to set up Fixed Costs
How to set up Variable Costs
Custom Cost Categories

Fixed Costs vs. Variable Costs

Fixed Costs : Fixed amount, can be set as recurring, or one-time expenses
Variable Costs: Expenses that use formulas based on a metric for your store (i.e. costs depending on monthly revenue)

How to add and set up Fixed Costs

When you click on Custom Costs, you are redirected to the Fixed Costs page
Click Add Cost to add a new fixed custom cost

In the popup modal, enter the cost name and amount of money
Choose a frequency to calculate this cost: Monthly, Weekly, Daily, or One-time
Select the Start and End dates. If the cost doesn't have an ending date, choose This is an ongoing cost
Click Add

Adding a new Fixed cost

The new fixed cost will be saved and added to your total costs calculation.

Your custom spend is updated every 30 days if you set Frequency as Monthly. From Date range, select This month and you will see your Custom spend updated.

How to set up Metric-based Costs

Go to Calculation> Custom Spend > Metric based Costs > New Cost
Enter the cost's label
In the Formula section, choose the source of this cost: Revenue, Profit, Facebook Ads, Google Ads or other
Enter the percent value to calculate the cost
For example, if you outsource your Facebook Ad Campaign to an agency, and they charge you 10 percent of Facebook Ad Spend. Then in the drop down menu, select % Facebook and enter the value "10" into the text box.
Select the starting and ending dates. If the cost doesn't have an ending date, tick the On-going checkbox
Click Create.

The new metric-based cost will then appear in the list and be added to your total costs.

Tick the checkbox Ad spend is calculated for LTV: CAC if you want to include it in the Custom Spend and LTV:CAC calculations. The cost will be marked with the star icon when shown in the list.

Custom Spend Categories

Custom Spend Categories helps you manage your custom costs easier. A Custom Spend report based on categories is also available in the Categories tab.

To set up the Custom Spend Categories, go to Calculation > Custom Spend > Categories. There are 5 default categories: Agency fees, Office expenses, Labor cost, Marketing, and Tax.

Custom Spend Categories by default

You can also create a new category by clicking on + Add Category, or quick add when creating a new cost.

In the Categories Report, you can choose a date range to view the total cost of each category. A custom cost that does not belong in any category will be put into Uncategorized.

Updated on: 15/05/2024

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