Equipment costs

A dealer essentially has two costs: 

• Cost@Sell
  Otherwise known as Sell. This is the price paid by the end customer for goods and services, and includes a margin.
• Cost@Cost
  Otherwise known as Cost. This is the dealer's actual internal cost for producing the goods and services.

A MARC is quoted to the customer at Sell. The Sell for one customer may be different to the Sell for another customer because some, especially large, customers may receive discounts. The Sell price includes a margin (parts margin plus service margin). All MARC financial reports presented to the customer are based on Sell.

Cost is the dealer’s internal cost and is commercially sensitive (only a few people in the company will ever see these numbers). The dealer’s finance group reviews the performance of a contract based on Cost (Sell figures are irrelevant).

In order to quote and report on the performance of a MARC, you need the ability to report on both Cost and Sell. AMT has both values.

AMT imports actual Sell and Cost history figures as Work Order Settlements from the enterprise resource planning system, and forecasts Sell and Cost based on Strategy Tasks.

• For budget and modelling projections: 
  • Sell = Strategy task job costs.
  • Cost = Strategy tasks job costs x (1 - budget margins at the equipment level).
• For current, centreline and archive projections:
  • Sell = Strategy task job costs.
  • Cost = Strategy task job costs x (1- set margins).