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This metric shows the company’s profit from sales after accounting for the cost of goods sold. It’s a good indicator of the overall health of product pricing. Especially important is what you include into your COGS. For instance in e-commerce, you should include as many attributes as possible such as returns, costs of acquisition etc. as these play a major role in the overall picture.

Also known as operating profit margin, this is a financial metric that measures a company’s profitability after considering operating expenses. When you extrapolate the fixed costs to your products you get more clarity into how profitable your pricing really is, as high Gross Margin might quickly be diluted with high operating expenses. The simplest way to create this KPI is to take a percentage of revenue a product is bringing in and allocate the share of operating expenses for the overall sales of that product. 

This KPI expresses the share of revenue that represents the business’s profit per product, category or brand, for example. It’s usually calculated by dividing the share of profit by the share of revenue and multiplying by 100. A higher share of profitable revenue indicates a more efficient pricing or better demand. This way you know what products actually matter to your business. 

This KPI measures the average profit margin (gross margin) for a company, product, or category of products. It’s usually calculated by dividing the profit by the revenue and multiplying by 100. This is a good measure of how well the products are doing financially.

This compares the average margin of the product during its entire lifecycle. It helps to understand how the margin changes over time and identify the most profitable periods of a product’s lifecycle.

This KPI compares the company’s actual margin to its target. If the actual margin is lower than the target, it indicates that there may be a need to adjust prices, reduce costs, or increase sales to improve profitability. Sometimes this also indicates unnecessary campaigning and too high discounts.

This metric helps to identify the most profitable products and categories of products. It can be useful to adjust your pricing strategy to optimize the profitability of your business.

This KPI measures the percentage of total sales that a particular category of products represents within a company’s product portfolio. It can help to compare categories or brands. 

This measures how sensitive customers are to changes in pricing. You can easily calculate it automatically from your sales data to each product. A high price elasticity of demand means that a slight price change will result in a large change in the quantity demanded. This can be used either on an individual or grouped level to understand your pricing gateway.

The number of units sold over a specific period of time is a crucial metric to measure. It tells you how some products are sold and when planning those price changes with the elasticity you can make a pretty close judgement how your pricing is going to affect your volumes. 

You also want to monitor the number of products you have in stock. This helps you see how the stock you have is doing and whether you should soon get rid of it. 

This measures how long it will take for your company to sell through the current inventory based on current sales rate. Simplified, you can calculate it by dividing the units in inventory by the number of units sold per day. A lower number of days of supply indicates that a product is selling quickly and may need to be reordered or that prices may need to be adjusted. Especially important in high-volume businesses as in seasonal businesses like fashion.

This measures the average number of units sold per week or per month, it can be calculated by dividing the total volume by the number of weeks or months in the given period. It gives you an insight of how consistent the sales are.

This KPI predicts how many units of a product you will sell in the future. Forecasting sales volume can help you plan for future inventory needs and make more informed pricing and buying decisions. The forecast is based on historical sales data, industry trends, and other factors such as new product launches, marketing campaigns, inflation and upcoming holidays, etc.

Keeping an eye on your competitors’ prices will help you understand market trends and adjust your pricing strategy accordingly. It can also be used for dynamic pricing if needed.

The percentage of total sales in a specific market that a company holds.

A Competitor Price Index (CPI) is a metric that measures the relative pricing of a company’s products compared to its competitors. It helps you understand where you stand in terms of pricing relative to the competition, and it can be used as a key performance indicator (KPI) to track the effectiveness of a company’s pricing strategy on different levels. To calculate the CPI, you need to choose a set of comparable products from your company and your competitors and then compare their prices. 

A competitor price change calendar is a tool that tracks changes in pricing made by your competitors over time. It can be a valuable KPI for your pricing dashboard, as it can help you understand market trends and adjust your pricing strategy accordingly.

This KPI tracks a company’s revenue and overall growth or decline over time. A good tip is to present it as a percentage increase or decrease compared to a previous period.

Similar to Revenue Development, this KPI measures the amount of revenue generated by sales of a particular product or category of products over a certain period of time. It can help you identify trends in revenue over time and understand the impact of pricing changes on your business. Easy filtering allows effective use of this KPI. 

This KPI compares the revenue generated by sales each day to the profit earned. It’s essential to monitor revenue and profit to understand the financial performance of your business. While high revenue is generally a good thing, it’s not always an indicator of profitability. 

This KPI predicts future sales of a product or category of products. A sales forecast can help you plan for inventory needs and make more informed pricing decisions. It is based on historical sales data, and can include industry trends, and other factors such as new product launches, marketing campaigns, and upcoming holidays.

Similar to the sales forecast, this KPI predicts future profit of a product or category of products. Profit forecast will give a clear picture of how profitable the sales forecast will be, and if any adjustments are needed for pricing strategy.

This KPI predicts your future volume of a product or category of products. Similar to sales and profit forecast, this will give a clear picture of how many products are expected to sell in the future, with the given pricing and help to plan for inventory and production needs. To make the most of it, you should always consider enhancing the forecast models with elasticity information to understand how much individual changes affect.

This metric compares the average amount of inventory on hand to the average daily or weekly sales. It can help you understand how quickly products are selling and whether or not you have the right amount of inventory on hand. A high average inventory compared to sales may indicate an overstock issue, and that prices need to be adjusted or inventory needs to be reduced.