The check nobody does.
HOW OFTEN
At least annually. More frequently where costs move.
WHAT TO REVIEW
Your costs, recalculated Your margins per product or service Competitor pricing Which items sell and which do not
WHAT TO LOOK FOR
Products where costs rose and prices did not Products selling well that could bear more Products with margins too thin to justify
THE COST CREEP PROBLEM
Supplier prices rise incrementally.
Without review, margins erode without anyone noticing.
WHAT TO CHECK PER PRODUCT
Current cost Current price Actual margin
Frequently different from what you assume.
WHAT TO DO WITH THE FINDINGS
Adjust prices where warranted Discontinue items that cannot be sold profitably Promote items with good margins
WHAT NOT TO DO
Review once and never again.
WHAT TO RECORD
Your cost and price history, so you can see the trend.
