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Profitability

The Profitability page helps you understand not just how much you sell, but how much you actually earn on each product and department. By comparing cost data from ENCOR against sales revenue, StorePulse calculates margins to help you make smarter pricing and purchasing decisions.

What You See​

The profitability analysis includes:

  • Revenue -- Total sales amount for each product or department
  • Cost -- The cost of goods sold, based on the cost-per-case and unit cost data from your ENCOR PLU catalog
  • Gross Margin -- The difference between revenue and cost
  • Margin Percentage -- Gross margin as a percentage of revenue

Product-Level Margins​

See which individual products have the highest and lowest margins. This helps you:

  • Identify high-margin items that you should keep well-stocked and prominently displayed
  • Spot low-margin or negative-margin items that may need a price adjustment or vendor renegotiation
  • Evaluate promotions -- If you put a product on sale, how much margin did you give up?

Department-Level Margins​

View margin performance aggregated by department. Compare which departments contribute the most profit (not just the most revenue). A department with lower sales but higher margins may be more valuable than a high-sales, low-margin department.

How to Use Profitability Data​

  • Pricing decisions: If a product has a very low margin, consider whether the price needs to go up or whether you can negotiate a better cost with the vendor.
  • Product mix: Promote high-margin products more aggressively -- use end caps, featured displays, and weekly flyers.
  • Vendor negotiations: Armed with margin data, you can have more informed conversations with vendors about cost pricing.
  • Category management: Decide which product categories to expand or reduce based on margin contribution, not just sales volume.
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Margin calculations depend on the cost data stored in your ENCOR PLU catalog. If cost data is not kept up to date in ENCOR, the margins shown in StorePulse will reflect those outdated costs. Work with your ENCOR administrator to ensure cost prices are maintained accurately.

tip

Sort by margin percentage to find products that earn you the most per dollar of sales. Sort by gross margin dollars to find the products that contribute the most total profit.