Custom Costs is a feature for you to add extra expenses to TrueProfit manually. As a seller on Shopify, there might be many different kinds of costs that incur in your store, for example taxes paid, Shopify subscription, KOL/influencers, or even Ad agencies costs. Basically, any costs that don’t fall into other existing categories in TrueProfit can be created and customized in the Custom Costs feature.
On this page
What are fixed costs and variable costs?
Fixed cost:
A cost with a set amount that does not change, no matter how many orders you get.One-time or recurring.
Example: Shopify subscription = $39/month, office rent = $500/month, or a one-time design fee = $200.
2. Variable cost:
A cost that is calculated as a percentage or formula, depending on your store’s performance.
Changes based on revenue or order value.
Example: An ad agency charges 10% of your monthly Facebook Ad spend, or a KOL takes 5% of revenue from sales with their code.
How to add a fixed cost
Step 1: Go to Custom Costs in the left menu > click Add cost.
Step 2: Enter a name, then select Fixed cost.
Step 3: Choose the currency and enter the amount.
Step 4: Repeat this cost
Decide if this cost is one-time or recurring.
For one-time costs: Leave the repeat option off.
For recurring cost: Turn on Repeat this cost and set the frequency (repeat every 1 day, every week, every month).
Step 5: Set the dates.
One-time cost: Start date = End date.
Recurring cost or ongoing cost: Select only the Start date. End date is no needed. Click the x to remove end date
Step 6: Select or add a category by typing
There are 2 common categories: Marketing and Taxes Paid
Step 7: LTV:CAC ratio (optional)
Check the box “Include in LTV:CAC ratio”, If you want this cost to be included in the LTV:CAC ratio calculation.
Leave it unchecked if you don’t want this cost counted in the ratio.
Step 8: Click Add
How to add a variable cost
Step 1: Go to Custom Costs > click Add cost.
Step 2: Enter a name, then select Variable cost.
Step 3: Select cost source
Choose the source of this cost (e.g. % Facebook, % Google Ads, %COGS).
Enter the percentage you want to deduct.
Example: If you hire an agency to run Facebook Ads and they charge 10% of your Facebook Ad spend, select % Facebook and enter 10.
Step 4: Set the dates
One-time cost: Start date = End date.
Recurring cost or ongoing cost: Select only the Start date. End date is no needed. Click the x to remove end date
Step 5: Select or create a category by typing
There are 2 common categories: Marketing and Taxes Paid
Step 6: LTV:CAC ratio (optional)
Check the box “Include in LTV:CAC ratio”, If you want this cost to be included in the LTV:CAC ratio calculation.
Leave it unchecked if you don’t want this cost counted in the ratio.
Step 7: Click Add
Managing custom cost categories
Custom Cost Categories help you manage your custom costs easier. A Custom Cost report based on categories is also available in the Categories tab.
Step 1: On the Custom Costs page, click Manage categories.
Step 2: Review the 5 default categories:
Agency fees
Office expenses
Labor cost
Marketing
Taxes Paid
Step 3: To create a new category, type the name in the search bar > click Add.
Hope this article helps you set up Custom Costs with ease. If you have any questions, feel free to reach out to our support team.