How is margin calculated?
Margin is calculated per product on Happy Buyers and then the product data is rolled up per brand, category and store on inventory health.
- We pull the POS sales data, for the day, every night
- We drop discounts and sales tax to get the price paid per item in each transaction
- We pull the unit cost from the package data
- We do some "smoothing" here to account for returns and credits by using a running 90 day unit cost average
- We take the total $ sold for the product, subtract the unit costs, and divide by the $ sold to get the margin %
- We then roll this data up for every brand, and every THC infused category
- For the store level data, we total up ONLY the THC infused categories (the categories shown on the Inventory Health "Categories" tab