Metrics to Monitor Business Health – Part 2: Gross Profit Margin

How is Gross Profit Margin Calculated?

Profit margins can also be affected by:

Special offers from vendors
Free items from vendors
Discounts or markdowns on items

How Should You use Gross Profit Margin?

You can use profit reporting to:

Monitor margins by category
Look for categories where price increases might be needed
Allocate space to higher profit items

Reporting on Gross Profit Margin

Profit Margin by Store

To run the Flash Sales Report:

Select Sales History → Reports → Flash Sales Report
(Optional) Check box to Show pie chart

Enter a Date Range in Report periods for Report period A

(Optional) Check the box for Report period B and enter a date range to compare two time periods
Enter a store or click the button for All stores

1. Click the Select columns tab
2. Pick and choose what data points to print on the report by moving the columns into the visible columns area by either:
  - Double-clicking a column header you want to add or remove
  - Clicking once and using the right or left arrow button

NOTE: Recommended data points include:

- Sales
- Cost (this is Cost of Goods Sold)
- Profit $
- Profit %

If you have chosen more than five Visible columns/data points, use the Report drop-down at the top of the window to select one of the Wide column layouts

Uncheck the Rounding checkboxes

(Optional) Check or uncheck the Show percentage of total check box

NOTE: If checked the checkbox will show the percentage of the total sales and other data points. This can clutter the report. You can preview the report to determine if you want to keep the percentages of totals or not.

11. (Optional) Use the Ticket History, Ticket History Line, and Store tabs to filter the report

12. Click Preview

Profit Margin by Category

The Sales Analysis by Group Report can be run to show you a breakdown of sales by category. This report also allows you to pick which data points print on the report.

To run the Sales Analysis by Group Report for categories:

Select Sales History → Reports → Sales Analysis by Group Report
In the Group by drop-down, select (Ticket History Line) Item Category

Choose a number of records to print by either choosing:

Top + a number of records – This will show the top number of categories based on the Print in Order by field
Bottom + a number of records – This will show the bottom number of categories based on the Print in Order by field
All – This will show all categories

Choose a Print in order by from the drop-down menu
NOTE: Most options in the print in order by drop-down are numeric and will print from most to least. If you need this report to print in an alphabetical order, choose either By item category (in alphabetical order by Category Code) or by group description (in alphabetical order by Category Description).

Enter a Date Range in Report periods for Report period A

(Optional) Check the box for Report period B and/or Report Period C and enter a date range to compare up to three time periods
Enter a store or click the button for All stores

(Optional) Check the box for Show pie chart

1. Click the Select columns tab
2. Pick and choose what data points to print on the report by moving the columns into the visible columns area by either:
  - Double-clicking a column header you want to add or remove
  - Clicking once and using the right or left arrow button

NOTE: Recommended data points include:

- Sales
- Cost (this is Cost of Goods Sold)
- Profit $
- Profit %

If you have chosen more than five Visible columns/data points, use the Report drop-down at the top of the window to select one of the Wide column layouts

Uncheck the Rounding checkboxes

(Optional) Check or uncheck the Show percentage of total check box

(Optional) Use the Ticket History, Ticket History Line, and Item Category tabs to filter the report
Click Preview

Profit Margin by Item

The Sales Analysis by Group Report can be run to show you a breakdown of profits by item number. This report also allows you to pick which data points print on the report. You could run the report to show your top 100 most profitable items for example.

To run the Sales Analysis by Group Report for items:

Select Sales History → Reports → Sales Analysis by Group Report
In the Group by drop-down, select (Ticket History Line) Item Number

Choose a number of records to print by either choosing:

Top + a number of records – This will show the top number of categories based on the Print in Order by field
Bottom + a number of records – This will show the bottom number of categories based on the Print in Order by field
All – This will show all categories

In the Print in order by, choose either Profit $ or Profit % – This will show most profitable items at the top of the report.
NOTE: Most options in the print in order by drop-down are numeric and will print from most to least. If you need this report to print in an alphabetical order, choose either By item category (in alphabetical order by Category Code) or by group description (in alphabetical order by Category Description).

Enter a Date Range in Report periods for Report period A

(Optional) Check the box for Report period B and/or Report Period C and enter a date range to compare up to three time periods
Enter a store or click the button for All stores

(Optional) Check box for Show pie chart

1. Click the Select columns tab
2. Pick and choose what data points to print on the report by moving the columns into the visible columns area by either:
  - Double-clicking a column header you want to add or remove
  - Clicking once and using the right or left arrow button

NOTE: Recommended data points include:

- Sales
- Cost
- Profit $
- Profit %

If you have chosen more than five Visible columns/data points, use the Report drop-down at the top of the window to select one of the Wide column layouts