Understand performance and profitability across the product suite in your business. Identify under-performing and unprofitable products and extrapolate opportunities to improve overall business profitability through SKU management.
In its extensive experience with Australian retailers, PCG Solutions has identified a consistent theme when it comes to SKU profitability – many retailers simply do not know the true profitability of their products. This gap in knowledge often leads to ineffective pricing strategy, discount control and overall mismanagement of a business’ product range.
Whilst most businesses operate using high level margin calculations of their products, understanding true profitability requires analysis of factors such as sales channels, customer types and seasonal campaigns, at a segment level.
PCG Solutions’ SKU Manager offers an end-to-end SKU management tool to help you understand performance and profitability across your product suite. Our solution allows the user to adjust various SKU management controls, includingpricing, discounting, substitution and discontinuation, and to determine the the subsequent effects on overall business profitability.
Key features
- Develop detailed segmentation profiles to determine profitability by product, customer, channel etc)Isolate negative SKU contributors
- Inform SKU management strategy with targeted recommendations
- Estimate profitability improvements from changes in SKU management controls (price, substitution etc)
Benefits
- Provide full visibility of true profitability across the product suite
- Enable analysis of product performance and development of specific improvement strategies
- Enable additional margin control and pricing accuracy