Low markup products
Helps analyze the current markup of products and highlights items that may need a price review.
Calculation Principle
Section titled “Calculation Principle”To calculate markup, the profit from the product is divided by its cost and multiplied by 100%. Only paid sales and closed orders with full or partial payment are included.
Not included in the calculation:
- orders in statuses “New”, “In Progress”, “Deferred”, “Ready”, “Closed Unsuccessfully”;
- unpaid sales;
- products with a markup higher than 30%.
Indicators:
- Markup, % — profit ÷ cost × 100%
- Revenue — price minus discount × quantity
Calculation Example
Section titled “Calculation Example”Let’s take a order with the product “Phone Case”.
Price $800, cost $600, discount $100, quantity 1 pc
Calculate separately:
Revenue — (800 – 100) × 1 = $700
Cost — 600 × 1 = $600
Profit — (800 – 100) – 600 = $100
Markup — (100 ÷ 600) × 100% = 16.7%
Summary
Section titled “Summary”Product markup: 16.7% — low, price review may be needed.
Product Report Key metrics on revenue and profit, recommendations for optimizing stock and improving profitability