SYSTEM AND METHOD FOR DEFINING FEES BY SETTING PROFIT
First Claim
1. A method for ensuring a desired profit percentage in a business that provides value-added inventory for fees, the method comprising:
- receiving electronic sales information representing a sum of fees received for providing a service in connection with the value-added inventory;
receiving electronic inventory cost information representing a cost of goods sold while providing the service;
receiving electronic equipment cost information representing a cost of equipment used during while providing the service, wherein the receiving of the electronic equipment cost information occurs only when equipment is used while providing the service;
receiving electronic billable labor cost information representing a cost of billable labor;
receiving electronic non-billable labor cost information representing cost of non-billable labor;
receiving electronic overhead cost information representing a cost of overhead;
receiving an electronic profit percentage value representing a percentage of the fees charged for the service to be allocated for profit;
calculating a gross margin percent value representing a difference of the sum of fees and the cost of inventory;
calculating a portion of the fee for the service attributed to billable labor; and
calculating a fee for the value-added inventory wherein at least a portion of the fee is calculated as a function at least one of the electronic inventory information, the electronic equipment information and the electronic overhead information, and further wherein a profit value realized by the fee for the value-added inventory is the percentage represented by the electronic profit percentage value.
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Accused Products
Abstract
The present invention provides an innovative and powerful system and method for establishing profitable pricing for a business where the owner will know the exact profit in every fee charged. The present invention provides a business with the ability to project value-added inventory fees based on any desired profit level with changes in production, overhead, and employee costs. In a preferred embodiment, profit is used to determine how to charge out billable labor, including, for example, employees. A convenient and intuitive user interface is provided that automatically calculates fees for the full range of a business'"'"'s value-added inventory, such that profit is provided in each price that is charged to a customer. Preferably, a desired profit percentage of a business'"'"'s sales submitted by a user, and fees charged for billable labor associated with value-added inventory are automatically calculated to achieve the desired profit. In the invention, prices calculated and charged to a customer are fair to the customer, fair to the employees, and fair to the owner or proprietor, and that the fees, when charged to a customer, will result in a predefined percentage of profit.
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Citations
20 Claims
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1. A method for ensuring a desired profit percentage in a business that provides value-added inventory for fees, the method comprising:
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receiving electronic sales information representing a sum of fees received for providing a service in connection with the value-added inventory; receiving electronic inventory cost information representing a cost of goods sold while providing the service; receiving electronic equipment cost information representing a cost of equipment used during while providing the service, wherein the receiving of the electronic equipment cost information occurs only when equipment is used while providing the service; receiving electronic billable labor cost information representing a cost of billable labor; receiving electronic non-billable labor cost information representing cost of non-billable labor; receiving electronic overhead cost information representing a cost of overhead; receiving an electronic profit percentage value representing a percentage of the fees charged for the service to be allocated for profit; calculating a gross margin percent value representing a difference of the sum of fees and the cost of inventory; calculating a portion of the fee for the service attributed to billable labor; and calculating a fee for the value-added inventory wherein at least a portion of the fee is calculated as a function at least one of the electronic inventory information, the electronic equipment information and the electronic overhead information, and further wherein a profit value realized by the fee for the value-added inventory is the percentage represented by the electronic profit percentage value. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19)
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20. A system for ensuring a desired profit percentage in a business that provides value-added inventory for fees, the method comprising:
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a sales information module operable to electronically receive electronic sales information representing a sum of fees received for providing the value-added inventory; an inventory cost module operable to electronically receive electronic inventory cost information representing a cost of goods sold during while providing the value-added inventory; an equipment cost module operable to electronically receive electronic equipment cost information representing a cost of equipment used during while providing the value-added inventory; a billable labor cost module operable to receive electronic billable labor cost information representing a cost of billable labor; a non-billable labor cost module operable to receive electronic non-billable labor cost information representing cost of non-billable labor; an overhead cost module operable to receive electronic overhead cost information representing a cost of overhead; a profit percentage module operable to receive an electronic profit percentage value representing a percentage of the fees charged for the value-added inventory to be allocated for profit; and a fee module operable to calculate a gross margin percent value representing a difference of the sum of fees and the cost of inventory, operable to calculate a portion of the fee for the value-added inventory attributed to billable labor and further operable to calculate a fee for the value-added inventory wherein at least a portion of the fee is calculated as a function at least one of the electronic inventory information, the electronic equipment information and the electronic overhead information, and further wherein a profit value realized by the fee for the value-added inventory is the percentage represented by the electronic profit percentage value.
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Specification