What is the purpose of Direct Cost on Products? Cost Price versus Direct Cost

RJ Jaurigue
RJ Jaurigue Member Posts: 1
edited August 7 in Sales CRM #1

I would like to know what's the purpose of Direct cost under the products section. Since there is a cost price already.

You define it as "Direct cost – Cost related to the development or production of the product."

So why is it that we can't see the direct cost under add products and list view? Additionally, As I'm doing it, I always need to manually input the values one by one. Very time-consuming.



  • Sophie
    Sophie Moderator Posts: 25
    10 Comments First Answer Name Dropper Photogenic

    Hi @RJ Jaurigue,

    Direct cost, as you mentioned, is the Cost related to the development or production of the product. The direct cost section is there to help you visualize or note the unit price breakdown, but it is not intended to be used as the total price of the product. The direct cost section can represent things such as the cost of developing, engineering, or producing the product which is not affected by how many units of this product will be sold. This is why the section is separate from the unit price. Since each product may have a different direct cost and you may or may not include that in the total unit price, you will have to note the unit price of each product if applicable.

    It is currently not possible to pull up the direct cost or cost per unit on the list view but I would be happy to pass along this feedback internally! Hopefully, this help to explain a bit further! Thank you!

  • DavidLogan
    DavidLogan Member Posts: 2
    First Comment

    In the context of products, the purpose of direct costs is to accurately calculate the total cost of producing an item. This calculation takes into account not only the direct materials used but also other direct expenses directly tied to the production process. Direct costs are part of the overall cost structure of a product and influence pricing decisions.

  • Josh Buesking
    Josh Buesking Member Posts: 151
    Third Anniversary 100 Comments 25 Likes 5 Insightfuls

    Products has lots of useless data inputs, even more if you explore the API.

    I guess with hopes in bringing more features out in the future.