|Quarterly Merchandise Profit And Loss Statement|
|Net Sales Percentage||67.5%|
|Gross Margin Percentage||55.0%|
|Less Catalog Expense||$1,150|
|Less Paid Search Expense||$250|
|Less E-Mail Mkt. Expense||$50|
|Less Affiliate Mkt. Expense||$100|
|Less Portal Adv. Expense||$200|
|Variable Operating Profit||$599|
|% Of Net Sales||11.1%|
|Ad To Sales Ratio||32.4%|
|% Of Demand: New Buyers||47.0%|
|% Of Demand: Organic, Non-Advertising||33.0%|
|% Of Demand: Repeat Item Buyers||29.0%|
|% Of Demand: Online||62.0%|
Now this isn't just one mega-metric, but rather, a compilation of numerous mega-metrics. Our job is to evaluate the item resume.
Is the item profitable?
Does the item generate demand organically, or is the item dependent upon advertising to generate sales?
Does fulfillment rate or return rate hurt the profitability of the item?
Does the item recruit new customers?
Do prior item buyers purchase the item again?
This style of reporting is sorely missing in our KPI / Dashboard / Customer-Centricity / Conversion-Rate / Shopping Cart Abandoned world. Show me the last time you've read an article that featured this style of reporting? Now, tell me what your merchandising team would think of this reporting ... would they be able to make better decisions?
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