SKU margin sheet

The sheet exists because a revenue ranking and a profit ranking are different lists. Discounts, returns, weight and basket role all hit products unevenly, so the product carrying the month by revenue can be a middling earner, and a quiet full-price line can be paying the rent. Running the arithmetic per product is the only way to find out, and the walk is the same one the profit margin calculator does interactively.

Fill the top twenty by revenue first. They usually carry most of what the store sells, an afternoon covers them, and the reordering they produce is the finding. Two data habits keep it honest: use the price the product actually sells at rather than its list price, and treat an unknown cost as unknown rather than as zero, because a product with no cost recorded reports a perfect margin and floats to the top of the wrong list.

The last column, units in the last thirty days, is what converts a margin into money. A modest contribution on high volume out-earns a beautiful one on ten units, and the ad budget should follow total euros kept, which is exactly what which products actually make money walks through.