Agreement Profitability

If you sell fixed-price (unlimited or “all you can eat”) agreements, periodically check whether you’re actually making money at your quoted rates. ConnectWise provides two tools for this: the Agreement Gross Profit Report and the Financial Dashboard.

Make the gross profit number accurate

The gross profit report is only as good as the costs you feed it. There are three places where missing data will skew the numbers.

Agreement additions

When you create any agreement type other than block time, use agreement additions to record product costs. Nearly every managed service carries overhead — RMM tool licenses, rack space fees, third-party license fees. Rather than entering these costs deal by deal, set a standard cost on the agreement product in the product setup table. The cost applies automatically when anyone creates the agreement, and you can override it on individual agreements when needed.

Member costs

Ensure every member record has a value in the Hourly Cost field. This is your fully burdened cost of labor — base salary plus overhead. ConnectWise University provides a spreadsheet to help you calculate it (search “Fully Burdened Hourly Cost of Labor” in ConnectWise University).

Work type cost multipliers

Go to Work Type Setup Table and verify that every work type has a Cost Multiplier of at least 1.0. A multiplier of 0 means ConnectWise reports zero labor cost for that work type, which makes your agreements look more profitable than they are.

Set multipliers based on how you pay engineers:

• Salaried engineers — set all work types to 1.0
• Overtime-eligible engineers — set overtime work types to 1.5 or 2.0 to match your actual pay rates

Note: Changes to member costs and work type multipliers are not retroactive. The gross profit report reflects the corrected costs only for time entries logged after you make the change.