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.

01Izziv

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.
  1. 01
    Costs rise in small steps nobody connects to the price
  2. 02
    Landed cost — duty and freight — isn't in the margin people look at
  3. 03
    Margin problems show up as a vague, company-wide decline
  4. 04
    By the time someone notices, months of sales went at thin margin
02POGLEJTE V OTIOX

Ista situacija, v samem izdelku.

Pravi zasloni iz Otiox demo delovnega prostora, korak za korakom.
  1. 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.

    See the forecast
  2. 02

    Reprice the product

    Open the product, set the new selling price and save; the forecast closes on the next scan.

    Reprice the product
03

Kako deluje

Namensko zgrajene funkcije, ki rešujejo natanko te probleme.
01

Landed cost vs. price

The Predictive Engine compares each product's landed cost with the price it sells at.
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

Kaj boste pridobili

Oprijemljive izboljšave, ki vplivajo na vaš dobiček.
  1. 01
    Margins that hold

    Prices move when costs do.

  2. 02
    Caught product by product

    Not as a vague dip in the monthly total.

  3. 03
    A number to act on

    The exact price — or supplier cost — that restores the target.

  4. 04
    Duty and freight included

    Margin is measured on landed cost, not purchase price alone.

05

Scenariji iz prakse

Oglejte si, kako to deluje v praksi.
Scenarij 1

Five percent left

A product's landed cost has risen to within a few percent of its price; it still sells as before.
Scenarij 2

The price to aim for

The forecast names the minimum price that brings the margin back to target.
Scenarij 3

Repriced

The selling price is raised on the product; the forecast closes after the next scan.
06

Preobrazba

Od kaosa do jasnosti.
Prej
  • Prices set once, costs keep rising
  • Landed cost ignored
  • Thin margins hidden in totals
  • Noticed months later
Potem
  • Landed cost vs. price, per product
  • Below-target margins flagged
  • Target price calculated
  • Repriced on the product
07

Pogosto zastavljena vprašanja

Hitri odgovori na pogosta vprašanja.
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

Pripravljeni preoblikovati vaše margin erosion?

Oglejte si, kako Otiox lahko reši vaše specifične izzive.