Playbook: same price, higher cost — the margin is quietly disappearing

The situation

The product was priced at $100 when it cost a lot less. Over the year the supplier raised prices, a duty was added on import and freight went up. The landed cost is now $95. The price never moved. Every unit sells at a 5% margin — and nobody ever decided that.

The screenshots come from the Otiox demo workspace. To follow along, choose Switch to demo in the sidebar — changes there never touch your live data.

Step 1 — See the forecast

Go to Predictive insights and filter for Margin erosion.

The card reads like a chain: input cost pressure (landed cost $95), the price hasn't kept up (still $100, a 5% margin), profit leaking on every sale. Decision synthesis gives the answer in numbers: raise the price to at least $105.56 for a 10% margin, or get the supplier cost below $90.

Step 2 — Reprice the product

Choose Open product, go to Pricing & Cost, set the new Selling Price and save with Update Product.

In the demo we set $110 — the editor shows the new profit margin straight away. On the next prediction scan the forecast is gone.

Run the margin forecasts after every supplier price change or new duty rule. A cost increase is the moment to look at the price, not the end of the quarter.

What you have at the end

• Every product whose margin fell below target, found automatically.
• The price — or supplier cost — that restores it.
• Repriced products and forecasts that close themselves.

Related

• Use case: Margin Erosion — /use-cases/margin-erosion
• Use case: Missing Cost — /use-cases/missing-cost