Set up 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.
How to set up Fixed Costs
How to set up Variable Costs
Custom Cost Categories
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)
Step 1: When you click on Custom Costs, you are redirected to the Fixed Costs page
Step 2: Click Add cost to add a new fixed custom cost
Step 3: In the popup modal, enter the cost name and amount of money
Step 4: Choose a frequency to calculate this cost: Monthly, Weekly, Daily, or One-time
Step 5: Select the Start and End dates. If the cost doesn't have an ending date, choose This is an ongoing cost
Step 6: Click Add to save your new Fixed Cost
Tick the checkbox Include this cost in LTV:CAC ratio 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.
The new fixed cost will be saved and added to your total costs calculation.
If you set the frequency as monthly for a Custom Cost, the total amount will be divided evenly within the 30 day period.
Step 1: Go to Cost Settings > Custom Cost > click on Variable Costs
Step 2: Click Add cost to add a new Variable Costs
Step 3: In the popup modal, enter the cost name
Step 4: In the Amount section, choose the cost source then enter the percentage to deduct from the source for this 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.
Step 5: Select the Start and End dates. If the cost doesn't have an ending date, choose This is an ongoing cost
Step 6: Click Add to save your new Variable Cost
The new Variable Cost will be added to your total costs.
Tick the checkbox Include this cost in LTV:CAC ratio 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 Cost Categories helps you manage your custom costs easier. A Custom Cost report based on categories is also available in the Categories tab.
To set up Categories, go to Cost Settings > Custom Cost > Categories. There are 5 default categories: Agency fees, Office expenses, Labor cost, Marketing, and Tax.
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.
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
Step 1: When you click on Custom Costs, you are redirected to the Fixed Costs page
Step 2: Click Add cost to add a new fixed custom cost
Step 3: In the popup modal, enter the cost name and amount of money
Step 4: Choose a frequency to calculate this cost: Monthly, Weekly, Daily, or One-time
Step 5: Select the Start and End dates. If the cost doesn't have an ending date, choose This is an ongoing cost
Step 6: Click Add to save your new Fixed Cost
Tick the checkbox Include this cost in LTV:CAC ratio 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.
The new fixed cost will be saved and added to your total costs calculation.
If you set the frequency as monthly for a Custom Cost, the total amount will be divided evenly within the 30 day period.
How to set up Variable Costs
Step 1: Go to Cost Settings > Custom Cost > click on Variable Costs
Step 2: Click Add cost to add a new Variable Costs
Step 3: In the popup modal, enter the cost name
Step 4: In the Amount section, choose the cost source then enter the percentage to deduct from the source for this 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.
Step 5: Select the Start and End dates. If the cost doesn't have an ending date, choose This is an ongoing cost
Step 6: Click Add to save your new Variable Cost
The new Variable Cost will be added to your total costs.
Tick the checkbox Include this cost in LTV:CAC ratio 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 Cost Categories
Custom Cost Categories helps you manage your custom costs easier. A Custom Cost report based on categories is also available in the Categories tab.
To set up Categories, go to Cost Settings > Custom Cost > Categories. There are 5 default categories: Agency fees, Office expenses, Labor cost, Marketing, and Tax.
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: 17/12/2024
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