01
Landed cost vs. price
The Predictive Engine compares each product's landed cost with the price it sells at.
Margin Erosion
Same price. Higher cost. The margin is disappearing and nobody changed a thing.
Supplier prices, duties and freight creep up one receipt at a time. The selling price stays where it was set a year ago, and every sale earns a little less — until a product sells at almost no profit. Otiox's Predictive Engine compares landed cost with price, warns you when the margin falls below target and tells you the price that restores it.
app.otiox.comFig. 00
Predictive · margin erosion
Selling at almost no profit
Landed cost has caught up with price
SignalMeasuredValue
Landed costper unit$95.00
Selling priceunchanged$100.00
Margintarget 10%5%
Price that restores the target: $105.56
Recommended
Raise the price to at least the target price, or get the supplier cost down.
Repriced. Margin back above target; the forecast closes on the next scan.
01The Challenge
Nobody decided to sell at a five percent margin. It just happened.
The product was priced when it cost a lot less. Since then the supplier raised prices, a duty was added and freight went up. Each change was small; the price never moved. Now every unit sells at a margin nobody would have approved — and the monthly report only shows it as a slightly worse total.
- 01Costs rise in small steps nobody connects to the price
- 02Landed cost — duty and freight — isn't in the margin people look at
- 03Margin problems show up as a vague, company-wide decline
- 04By the time someone notices, months of sales went at thin margin
02SEE IT IN OTIOX
The same situation, in the product.
Real screens from the Otiox demo workspace, step by step.
- 01
See the forecast
Predictive insights: landed cost close to price, margin far below target, profit leaking on every unit — and the price that fixes it.
- 02
Reprice the product
Open the product, set the new selling price and save; the forecast closes on the next scan.
03
How It Works
Purpose-built features that solve these exact problems.
02
Target margin
It flags products whose margin has fallen below target and shows the margin today.
03
The price that fixes it
The forecast gives the minimum price that restores the target margin — or the cost you'd need from the supplier instead.
04
Profit leak in money
Profit lost per unit and over the next month, so you can rank what to fix first.
05
Fix on the product
Open the product from the forecast and set the new price; the forecast clears on the next scan.
04
What You'll Gain
Tangible improvements that impact your bottom line.
- 01Margins that hold
Prices move when costs do.
- 02Caught product by product
Not as a vague dip in the monthly total.
- 03A number to act on
The exact price — or supplier cost — that restores the target.
- 04Duty and freight included
Margin is measured on landed cost, not purchase price alone.
05
Real-World Scenarios
See how this works in practice.
Scenario 1
Five percent left
A product's landed cost has risen to within a few percent of its price; it still sells as before.
Scenario 2
The price to aim for
The forecast names the minimum price that brings the margin back to target.
Scenario 3
Repriced
The selling price is raised on the product; the forecast closes after the next scan.
06
The Transformation
From chaos to clarity.
Before
- Prices set once, costs keep rising
- Landed cost ignored
- Thin margins hidden in totals
- Noticed months later
After
- Landed cost vs. price, per product
- Below-target margins flagged
- Target price calculated
- Repriced on the product
07
Frequently Asked Questions
Quick answers to common questions.
01What cost does Otiox compare with the price?
The landed cost — purchase price plus duty and other costs added on receipt — against the product's selling price.
02Does Otiox change prices automatically?
No. The forecast recommends the price; you change it on the product. Pricing is a decision, not an automation.
03What if I can't raise the price?
The forecast also gives the supplier cost that would restore the margin, so you know what to negotiate.
04When does the warning go away?
On the next prediction scan after the price or cost changes enough to bring the margin back to target.
Margin Erosion
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