Product Margin
Difference between the selling price and the cost price (COGS) of a product, expressed as a percentage.
Product margin is the gross margin calculated at the individual product level. It determines which products are profitable to sell and which ones drag down your overall profitability.
Calculation: Product Margin = (Selling Price excluding tax - COGS) / Selling Price excluding tax x 100.
A product-level analysis often reveals surprises: best-sellers are not always the most profitable. A best-seller at 15% margin generates less profit than a niche product at 60% margin.
Fullmetrix imports product costs from your CMS and calculates margin by product, by category, and by period. You can identify at a glance which products to promote and which to optimize.
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