Product profit efficiency
Every company's goal is profit! Yes, we know that! And we try to increase markups and the quantities of goods sold. We analyse products by quantities sold, amounts and markups. But at the finish line the manager says: we did not reach the profit target! Or worse: we are making a loss! Or: the money has disappeared somewhere!?
A product's markup is not yet profit in your pocket! To create that profit, we incur costs – money. Lower for some products, higher for others. If the markup a product earns is lower than all the costs of selling it, the product's profit efficiency is negative. The more we sell it, the bigger the loss! Products with high profit efficiency, on the other hand, must be given every chance to boost their sales and increase the company's profit.
Terra Stock analyses each product by the profit efficiency it creates and helps find ways to increase the profit each product brings.
Benefits
Product profit efficiency is a key factor in achieving the company's profit. It is not enough to increase markups or sales volumes – the costs incurred must also be taken into account. Terra Stock offers efficient solutions by analysing the profit efficiency each product creates and suggesting how to improve it. If a product's markup is lower than the costs of selling it, its profit efficiency is negative and the product causes losses. For efficient sales, more attention should go to products with a high efficiency ratio, and their sales should be promoted. Terra Stock helps find the most efficient ways to increase the company's profit, focusing on efficient sales management and profitability.
Other modules
1Assortment and shelves
2Stock and orders
3Prices and profit
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