topic Re: Can I make profitability calculations in Hubspot? in Dashboards & Reporting

Can I make profitability calculations in Hubspot?

FatihSeven — Sat, 27 Apr 2024 10:17:04 GMT

Hi everyone,

We want to measure not only the turnover of team members but also their sales profitability. We make premium payments based on profitability and measure this monthly. While we pay x% premium up to a certain level of profitability, we pay y% higher premium for higher profits. Can we show this as a report in Hubspot?

For example, Joe made a profit of $1K and earned a bonus of $100 based on a 10% bonus rate. Sarah made a profit of $15K and based on the 20% bonus rate, it looks like she earned a bonus of $3K. I wonder if such calculations have been made. In the Hubspot Pro version, I can set a turnover target, but I cannot set a profit target and follow it through the bar.

Thanks in advance.

Re: Can I make profitability calculations in Hubspot?

jonojeff — Sun, 28 Apr 2024 17:15:03 GMT

Hey @FatihSeven , to my knowledge this isn't something that's easily set up within Hubspot - especially as there's quite a lot of conditional/scaling variables. However, if someone else knows, I'd love to hear.

A standard approach I've used previously is to export the data on a weekly basis to a pre-filled Google Sheet that has formulas setup in advance. That way you can standardize the export/import into Sheets, and the profitability/commission calculations are done automatically.

I believe there are some plugins that may help, perhaps https://app.hubspot.com/l/ecosystem/marketplace/apps/sales/sales-enablement/palettehq-235966 - however not too sure about the scaling variables you have. worth checking out none the less!

Good luck!

Re: Can I make profitability calculations in Hubspot?

JeremyV — Tue, 30 Apr 2024 15:21:03 GMT

Hey Fatih,
One thing that comes to my mind is this:
- Create a "Commission" pipeline, manage accesses and remove it for all users except yourself if need be.
Create a deal based workflow that creates "Deal 2" (associated to Deal 1) when Deal 1 enter "Closed Won" stage.
Add a step in your workflow to set up your comission % ( eg Branch 1 : if Amount Deal 1 is greater than 50K then set property value of deal 2 to 5%)
Create a calculated field in Deal 2 if you want your amount to be negative
Now go to your Hubspot report, you should be able to stack amounts of each deal based on the association of the 2 deals/owner.

Hope this helps,
Regards,
Jeremy

Re: Can I make profitability calculations in Hubspot?

HFisher7 — Wed, 05 Jun 2024 15:21:20 GMT

@FatihSeven - How do you currently capture profitability within HubSpot?

To do this out-of-the-box:

I would get reps to add line items to deals utilsing both the Price and Unit cost properties so the Margin is auto-calculated by HubSpot.
You could then create a custom calculated deal property to pull the line item Margin up to the Deal record.

The benefit of having the margin at a deal level is that you can then create a custom calculation deal property formatted as a currency - calculation properties are not available at a line item level - to calculate the commission payment for that deal based on the profitability of it.

E.g. If the commission on deals with a margin of less than £10,000 is 10% and over £10,000 is 20% the calculation property would be something like:

IF(([DEAL.margin] < 10000), ([DEAL.margin] * 0.1), ([DEAL.margin] * 0.2))
As this is a deal property, you can then build a report showing total commission by rep by close month, something like this: