The Model
Recipes become costs. Costs become margins. Margins become decisions.
Intensifly builds a living cost model from your products, suppliers, and overheads. Every number you see — margins, coverage, Earning Power, Owner Capacity, Trust — traces back to this model. Here's how it works under the hood.
One equation drives everything
Revenue minus variable costs minus overheads equals profit. Every business follows this — the difference is how precisely you know each part.
Variable costs come from recipes: what goes into each product or service you sell, priced by your actual suppliers. Overheads are everything else — rent, salaries, utilities, loan interest — entered as flat monthly amounts. The model computes each side differently, but they feed the same equation.
Every product has a recipe
A recipe — also called a bill of materials — defines what goes into producing one unit: materials with quantities, consumables with counts, labor measured in time. Each component links to a supplier and a price. The unit cost rolls up automatically.
Sell price minus unit cost gives you the margin — per product, with real numbers. Recipes can nest. A sub-assembly is itself a recipe with its own inputs. The model expands the full tree to compute the true total cost.
Why COGS doesn't show up in your bank
You pay a supplier for a bulk order. That's a cash event — money leaves your account. But the cost doesn't hit your profit until you sell products that consume those materials.
Hits your bank account today.
via recipes and quantities.
support your sales plan?
Same recipe, opposite question
The recipe tells you what a product needs. Run it forward, and you get cost. Run it backward, and you get capacity: given your supply plan, how many units can you fulfill?
Coverage compares scheduled purchases against projected demand for every input. The limiting factor — the one input that runs out first — determines your effective capacity. This isn't inventory management. It's a model-level feasibility check: do the plans add up?
One price change updates everything
A supplier raises the price on a key input. In the model, the change propagates automatically. Every recipe that uses that input recalculates. Every product margin updates. If any product drops below your threshold, it surfaces as an issue.
The cascade works for any model change: a new supplier option, a recipe adjustment, a fixed cost increase. Change the input once. See the system-wide effect immediately.
Variable costs need recipes. Overheads don't.
Variable costs scale with production — they need quantities and recipes to compute a per-unit cost. Overheads are flat amounts that don't change with volume.
Time is just another ingredient
Labor works like any other recipe component — except it's measured in time, not weight or volume. A product takes a certain amount of staff time to produce. At an hourly rate, that becomes a per-unit cost.
Hourly labor scales with production. A salaried employee is a fixed cost — same monthly amount regardless of volume. The model puts each in the right bucket automatically. No timesheets required.
See the model in action
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