June 05, 2017

Monitoring Gross Margin Dollars

For the company we are analyzing, here's the story on rolling twelve-month gross margin dollars ...

Again, Management is trying stuff.
  1. They raised prices (presumably on new items - more on that topic later).
  2. They've tried free shipping promotions.
  3. They increased gross margins when increasing prices.
The result?
  1. Fewer customers.
  2. More demand per customer.
  3. Slowly increasing gross margin dollars.
  4. A problem in the most recent six month time-frame.
We'll need to dig into the recent time-frame in more detail, obviously.

Tomorrow, we take a look at merchandising information.


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