KPI Feature Spotlight: Average Cost Price Changed
With supply chain disruption issues widespread and an increasingly uncertain future, merchants need to be able to stay on top of cost price fluctuations at all times to protect their profitability. But traditionally, that’s been quite a time-consuming process, relying either on manual checks or updates from suppliers.
So we built an alert system for it.
This week’s KPI feature spotlight is shining on Average Cost Price (ACP) Changed. It does exactly what you’d expect – it flags up changes in the cost prices of products across your stock profile, enabling you to make a choice about whether to keep your original selling price or vary it to maintain or flex your margin.
The KPI tile on the user dashboard flags how many products have an amended cost price; the user can simply click the tile for a complete list of which products have changed and by how much. It is a simple prompt designed to help you stay on top of your margin and pricing, alerting you to any changes that might need reviewing.
Do I have to check pricing on every line?
Not unless you want to, no. There are some time-saving options built in to help manage the admin. For example, you can set the margin rate to automatic, meaning that the selling price will remain at the chosen margin on top of the cost price, and will therefore fluctuate in line. That means you are always operating at your chosen mark-up percentage without having to worry about checking. You can then opt to manually override this for specific products or specific customers, to offer more competitive pricing or to optimise profit opportunities when national supplies run short.
What you do with the price is absolutely your choice, but the system helps by alerting you to potential issues, protecting your ideal margins by default, and giving you the information you need to make pricing decisions.
Of course, you can opt to check everything manually if you prefer; particularly if you have issued a brochure with pricing or have a standard price list, you may well prefer to control your inventory pricing line by line so it’s not changing regularly. Again, that’s totally up to you, but the system has the flexibility to cope either way and will still be able to flag changes to make sure you’re aware of potential margin erosion.
Profitability peace of mind for all users
ACP Changed is a really useful little metric which helps keep underlying costs front of mind in a manageable way. You can see instantly how many product lines are affected and might need looking at, and you have total control over the margin and selling price you opt for. But you always have the peace of mind with knowing that nothing is happening as the result of an oversight or error, so if you choose a more competitive selling price, that’s entirely up to you, but you’re doing it with all the relevant information instantly to hand.
UT400 also has margin protection built in, so you can select a margin beneath which you’re not prepared to go. The system would then flag up an alert if a user attempts to sell a product for less than that margin. It can be overruled by a manager of course, giving you total control over the deals you’re happy to negotiate with customers, but it does mean margin doesn’t get eroded accidentally.
Tools to make every day a little bit easier
UT400 comes with over 110 KPIs as standard to help every user to be able to carry out their role more easily every day. Key metrics are at your fingertips to help you focus attention where it’s needed, and automated alerts and processes can alleviate enormous amounts of time pressure. The system is designed to drive process efficiency, waste reduction and profitability – and to do all that as simply as possible.
If you would like to test it out for yourself, completely free, just register your details here and we’ll send you an online demo system login.