Cost of Goods Sold (COGS) or Product Cost is essentially one big part of your total costs. Simply put, COGS of one product is how much it costs you, as opposed to how much you charge customers (Sales price).
With TrueProfit, you can manage your COGS easily.
Follow this video tutorial or read below for instructions.
There are two ways to import COGS into TrueProfit: Estimate COGS or enter manually.
1. Estimate COGS
For a store with many products, it can take a lot of time to enter all COGS. Luckily, you can roughly estimate COGS based on Sales price.
Go to Cost Settings > COGS > Estimated COGS Rate. You'll find a slider representing COGS as the percentage of Sales price. For example, if you define the percentage as 20%, sales price is $100, then your COGS is $20.
What if there are some products that don't follow this rule? You can then use the second method to specifically adjust them.
2. Enter COGS manually
Old school but accurate. You can add COGS for each product (or variant). For winning products, we strongly advise that you specifically enter COGS to get best results.
Go to Cost Settings > COGS > Product List. You'll see a list of your products in store. Simply enter the product costs in the COGS column. This value will be applied to all variants of the same product.
If a product has multiple variants with different prices, click the arrow next to a product's name to display all variants. There you can adjust COGS for each variant.
Manually entered COGS will be prioritized over estimated COGS. This means any changes with the estimation slider will not override the values you already entered.
Update Oct 2019: Update COGS to orders in the past
From now on, you can change COGS in 2 ways, depending on your need:
- Change COGS from the present to future: Simply make changes in the COGS field and do nothing else, as usual.
- Change COGS from the past to future (update COGS in the past): Make changes in the COGS field, then click on "Re-calculate Product Profit".
If you need to update COGS to all orders in the past, click on "Re-calculate Profit" at the bottom of the page. This will apply the new COGS to all orders and refresh profit calculation.