Setting up quantity-based COGS by products
If you're looking for how to set up COGS in TrueProfit, check out the Setting up Cost of Goods (COGS) for all products article.
Quantity-based COGS helps you manage different cost ranges for a product or a variant instead of using a fixed COGS. This feature is available in the Ultimate and Enterprise plan only. If you don't have it, please upgrade your plan to enjoy this feature.
By default, TrueProfit syncs the COGS from your Shopify admin and apply it in cost calculations. You can also manually edit and update the COGS for your products in the Product Cost settings.
You can add or change the COGS for a product or variant in your store, click on the edit icon. In this modal, there are two main settings for COGS:
Pricing mode: Fixed cost or Quantity-based cost
Fixed cost: Set a fixed COGS for a product. TrueProfit also has the Historical COGS feature to help you manage changes in product costs over time.
Quantity-based cost: Set up different COGS ranges for product batches by unit count. Read more about this feature below.
Apply to specific variants or count all variants as a single product
If you choose to apply to "Specific variants", you can edit the COGS and Historical COGS for each variant in the product's dropdown.
If you choose "This product, all variants included", you won't be able to edit the COGS and Historical COGS for the variants of this product.
As you chose the Quantity-based cost pricing mode and applying the COGS to your product or variant as above, here's how to set up the cost levels.
In each level, there are 2 fields: Units per level and Cost per level. Units per level is the unit limit in each level to calculate COGS for an order. For example, when an order reaches the limit of level 1, the remaining items will take the COGS amount in level 2, and so on. The total COGS in this order will be the sum of all items purchased at each pricing level.
If you have the same COGS based on quantity for all variants, you can set quantity-based COGS at the product level by choosing the This product, all variants included to apply the COGS rule to the product as a whole.
You have a T-shirt product with different COGS for the White variant and Black variant as following:
- 1 item: $15/item
- From 2 to 4 items: $13/item
- From 5 to 9 items: $10/item
- From 10 onwards: $7/item
Here's how to set the COGS level in the app:
- 1 item: $10/item
- From 2 to 4 items: $9/item
- From 5 to 9 items: $7/item
- From 10 onwards: $5/item
Here's how to set the COGS level in the app:
You can also choose one or multiple variants to set quantity-based COGS.
Once saved, the COGS for this product will be calculated like this:
- If you have an order has 5 items of the T-shirt: 5 black. The total COGS = ($15*1) + ($13*3) + ($10*1) = $64
- If you have an order has 5 items of the T-shirt: 3 white and 2 black. The total COGS = ($10*1) + ($9*2) + ($15*1) + ($13*1) = $56
Quantity-based COGS helps you manage different cost ranges for a product or a variant instead of using a fixed COGS. This feature is available in the Ultimate and Enterprise plan only. If you don't have it, please upgrade your plan to enjoy this feature.
Editing COGS for a product or variant in Cost of Goods
By default, TrueProfit syncs the COGS from your Shopify admin and apply it in cost calculations. You can also manually edit and update the COGS for your products in the Product Cost settings.
You can add or change the COGS for a product or variant in your store, click on the edit icon. In this modal, there are two main settings for COGS:
Pricing mode: Fixed cost or Quantity-based cost
Fixed cost: Set a fixed COGS for a product. TrueProfit also has the Historical COGS feature to help you manage changes in product costs over time.
Quantity-based cost: Set up different COGS ranges for product batches by unit count. Read more about this feature below.
Apply to specific variants or count all variants as a single product
If you choose to apply to "Specific variants", you can edit the COGS and Historical COGS for each variant in the product's dropdown.
If you choose "This product, all variants included", you won't be able to edit the COGS and Historical COGS for the variants of this product.
How to Set Up Quantity-based COGS
As you chose the Quantity-based cost pricing mode and applying the COGS to your product or variant as above, here's how to set up the cost levels.
In each level, there are 2 fields: Units per level and Cost per level. Units per level is the unit limit in each level to calculate COGS for an order. For example, when an order reaches the limit of level 1, the remaining items will take the COGS amount in level 2, and so on. The total COGS in this order will be the sum of all items purchased at each pricing level.
If you have the same COGS based on quantity for all variants, you can set quantity-based COGS at the product level by choosing the This product, all variants included to apply the COGS rule to the product as a whole.
Here's an example of how to use this feature for your store:
You have a T-shirt product with different COGS for the White variant and Black variant as following:
Black variant COGS:
- 1 item: $15/item
- From 2 to 4 items: $13/item
- From 5 to 9 items: $10/item
- From 10 onwards: $7/item
Here's how to set the COGS level in the app:
White variant COGS:
- 1 item: $10/item
- From 2 to 4 items: $9/item
- From 5 to 9 items: $7/item
- From 10 onwards: $5/item
Here's how to set the COGS level in the app:
You can also choose one or multiple variants to set quantity-based COGS.
Once saved, the COGS for this product will be calculated like this:
- If you have an order has 5 items of the T-shirt: 5 black. The total COGS = ($15*1) + ($13*3) + ($10*1) = $64
- If you have an order has 5 items of the T-shirt: 3 white and 2 black. The total COGS = ($10*1) + ($9*2) + ($15*1) + ($13*1) = $56
Updated on: 19/02/2024
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