Enhancing Pricebook: A Proposal for Improved Price Management and Gross Margin Analysis

[josh_via]

Pricebook Code Gross Margin Portal

Introduction:
In my role as a dedicated user of Service Titan, I have come across an area where I believe the platform could be further improved to facilitate price management and enhance the visibility of gross margin analysis. I propose the implementation of an interface within the pricebook that enables users to edit pricebook items while simultaneously reviewing gross margin averages or drilling down to identify factors that may be affecting the margin. This feature would streamline the process of adjusting pricebook prices and provide a valuable tool for maintaining profitability. Furthermore, the addition of a filter in the pricebook that allows users to examine codes below a selected gross margin would offer even more flexibility and control over pricing strategies.

1. Enhanced Pricebook Editing:
The proposed interface within the pricebook would allow users to edit pricebook items and simultaneously review the impact on gross margin. By integrating gross margin analysis into the pricebook, service providers can better understand how their pricing decisions affect profitability. This feature would empower businesses to make informed adjustments and align their prices with desired gross margin targets.

2. Gross Margin Averages and Drill-Down Analysis:
Within the interface, the ability to view gross margin averages for specific pricebook items would enable users to quickly identify any inconsistencies or potential issues. Moreover, the ability to drill down into individual codes used on tickets and analyze their impact on the reported gross margin would offer valuable insights into the factors influencing profitability. This granular analysis would assist in identifying areas where margins may be lower and prompt appropriate adjustments.

3. Filter for Codes Below Chosen Gross Margin:
To further enhance the pricing analysis capabilities, the addition of a filter in the pricebook would allow users to examine codes that fall below a selected gross margin. This filter would serve as a powerful tool to identify specific codes or services that may need attention and could be impacting profitability. By easily identifying underperforming codes, service providers can take prompt action to optimize their pricing strategies and ensure healthy margins.

Conclusion:
The proposed interface within the Service Titan pricebook, coupled with the ability to review gross margin averages and perform drill-down analyses on code-level profitability, would greatly enhance the platform's pricing capabilities. This feature would empower service providers to make data-driven decisions, optimize their pricing strategies, and maintain desired gross margins. Additionally, the inclusion of a filter to identify codes below a chosen gross margin would offer further flexibility and control over pricing adjustments. I believe that implementing these enhancements would make adjusting pricebook prices significantly easier and contribute to the continued success of Service Titan's users.

@ServiceTitanAdm , @KPrall , @lsimple , @NikPro , @STCPro 

[josh_via]

I'll respond below for each item mentioned.

1. You suggested putting margin data in the Pricebook. In the past, items like this might end up in reporting but you would much prefer seeing the data where the action would be taken -- in the Pricebook. Yes, seeing the margin data in Pricebook, for me, would make it easier and more efficient to make changes to Pricebook items failing to meet projected margins. Coupled with the additional requests below, I believe this would be a huge advantage to Service Titan and a marketing piece that will help sell the product. The name of the game is Profits, and Pricebook is the quarterback.

2. Given that we have the margin metrics in the Pricebook, you'd like to sort and filter so you can prioritize and tackle the codes one-by-one Correct, even though the Pricebuilder allows you to provide mass updates, some Pricebook items may still fall below performance metrics. Therefore, having a code-by-code breakdown within a filter capability would also allow us to make changes at a granular level.

3. Within the data, you'd also like to be able to determine why expected margins weren't achieved via a "drill down" functionality. For example, maybe the technician had permissions and put in a price different from the Pricebook price. Correct, similar to a sales report and being able to break down what work orders that are credited to the tech for sales, the codes could have a similar function to provide work orders that had that code that could offer investigation as to why that instance or instances fell below the margin. And this should include labor metrics. Meaning estimated hours, versus actual hours taken with that code used. *Understanding that multiple codes could be used on the same ticket, this function would still allow for a granular investigation into the code to propose or make adjustments to the price.

4. Finally, if I'm reading right, it looks like you'd also like to see a calculator. The calculator could forecast how increasing the price of a service by $X could impact the revenue/margins for the company (assuming sales rates and current costs stay the same) More of a wishlist item, but yes. The integration of a profit calculator showing a possible budget goal or projected increase in sales based on how often the code is used.

Let me know if you have any additional questions. Thanks again for your consideration.

[WLam]

Hi Josh, 

I'm the product manager of the Pricebook and wanted to reach out to say that I have seen your feedback. 

Thank you for taking the time to think deeply on this subject. 

Below I highlighted some of your points just to make sure I haven't misunderstood you. 

1. You suggested putting margin data in the Pricebook. In the past, items like this might end up in reporting but you would much prefer seeing the data where the action would be taken -- in the Pricebook.

2. Given that we have the margin metrics in the Pricebook, you'd like to sort and filter so you can prioritize and tackle the codes one-by-one

3. Within the data, you'd also like to be able to determine why expected margins weren't achieved via a "drill down" functionality. For example, maybe the technician had permissions and put in a price different from the Pricebook price. 

4. Finally, if I'm reading right, it looks like you'd also like to see a calculator. The calculator could forecast how increasing the price of a service by $X could impact the revenue/margins for the company (assuming sales rates and current costs stay the same)

Does that sound accurate?

At this point, I can't guarantee a timeline but thank you once again for your feedback and insights. 

Wing