It's one thing to get the creative ideas flowing, but it’s a whole other challenge to keep the numbers in check. But here’s the thing—- knowing your profit margins ensures you stay in business (and become successful).

So, let’s dive into how thesheet can simplify this process and make profit margins easy to track and adjust, one product at a time.

Building margin tables that make sense

Setting up proper margin tables is essential for understanding the financial health of your design projects. In an industry where one misstep in a formula can mean the difference between making money or just breaking even, having a clear view of your pricing is crucial.

So what do you need to get started?

• RRP (Recommended Retail Price): The price suggested by brands and resellers.

  
  

• Trade Discount (%): The discount you’ve negotiated as a trade professional.

  
  

• Trade Price: The actual discounted price you pay.

  
  

• Markup (%): The percentage you add to the trade price for your client.

  
  

• Cost: What the product costs you.

  
  

• Profit: Your earnings after deducting the cost from the client price.

  
  

• Client Price: The price you charge your client.

  
  

• Client Savings (%): How much your client saves compared to the RRP.

The beauty of working with thesheet? You don’t need all this information upfront. Use what you have, and thesheet will help you calculate the rest.

How to use profit margin tables in thesheet

Here’s where thesheet shines. When you create a project and start adding products using the Web Clipper, the first key detail you’ll gather is the RRP. From there, the product’s recommended retail price automatically populates in your margin table, and you’re off to the races.

Once the project moves into the ordering phase, you’ll have a full, easy-to-read margin table that pulls the RRP straight from your data. From here, it’s up to you to input your trade discounts, markup percentages, and any additional costs—giving you a clear snapshot of your potential profit.

Trade discounts and design fees

For many interior designers, one of the simplest and most transparent ways to manage client pricing is to pass on the full trade discount and charge separately for design fees. This approach adds clear value for the client but requires accurate pricing of your services to ensure you’re compensated fairly for your time and expertise. It’s a common method for interior styling or consulting projects.

How to set it up in thesheet

1. Enter trade prices or trade discounts:
   In the orders phase of thesheet, input either the individual trade price or the trade discount percentage for each product in the margin table. This will automatically update the table with accurate trade prices.

   
   

2. Set markup to zero:
   In the markup % column, enter "0" for all products. This tells thesheet that you’re passing the trade price directly to the client with no additional markup, meaning the client price will match the trade price.

   
   

3. Add design fees separately:
   Once you’ve set up the products in the margin table, you can create a separate line item on the client’s invoice for your design fees. This ensures the client sees the value of the trade discount while also understanding the cost of your design expertise.

This method not only highlights the savings clients get from your trade discounts but also allows you to focus on charging for your services without building it into the product price.

Trade discounts and product markups

If you’re not passing on the full trade discount, another approach is to apply a product markup. Markups can be used to strike a balance between offering clients a discount below the RRP (Recommended Retail Price) while still making a profit. Depending on your negotiated trade discount, you can add a markup to the trade price, which could either:

• Provide a small client discount while keeping the price below the RRP.

  
  

• Increase the client price to exceed the RRP, generating additional profit.

How to set it up in thesheet

1. Input trade price or trade discount:
   Just as in the previous method, start by entering the trade price or trade discount percentage into the appropriate columns of thesheet’s margin table during the orders phase. This ensures all product pricing is accurate.

   
   

2. Add markup percentage:
   In the markup % column, enter your desired markup. This markup can be based on how much profit you want to make while balancing any client discounts. thesheet will automatically update the Client Price based on the markup you’ve entered.

With this method, you can fine-tune each product’s pricing to match your profit goals while ensuring your clients still see value in the pricing structure.

Trade price and client price

In some cases, suppliers provide a specific trade price for products rather than a percentage discount. This is often shared as a trade price list from the supplier. Luckily, thesheet handles these calculations with ease.

How to set it up in thesheet

1. Enter trade price:
   For products with a set trade price, simply enter the trade price in the margin table’s product column. thesheet will then automatically calculate the trade discount percentage based on the RRP.

   
   

2. Adjust client price:

   If you want to offer the client a specific price (rather than using a markup percentage), enter the client price directly into thesheet. It will calculate the markup percentage and show your estimated profits for that product.

thesheet’s margin tables allow you to customise your pricing strategy product by product and order by order, helping you track profits and client savings with precision. You can also add extra costs like Delivery or other Extras directly into the table, giving you full visibility into your project’s financials.

It's time for the next step

Managing markups, trade discounts, and margins doesn’t have to be an overwhelming task anymore. With thesheet, you can streamline your pricing strategy, confidently set up margin tables, and keep a sharp eye on your profitability—product by product. Whether you prefer passing along trade discounts to clients or applying markups for extra revenue, thesheet makes it easy to find the perfect balance that works for your business.

So why stick with outdated, error-prone spreadsheets? Upgrade to thesheet and take control of your margins, ensuring your creative vision stays aligned with your business goals. Get started today, and see how thesheet simplifies financials, giving you more time to focus on what you do best—design!