Product Group Margin Variance Agent (Formula Expressions)

Difference between the minimum acceptable margin threshold for the product group and the SKU average margin percent. A negative value indicates the SKU is below the threshold.

• s1 – Series 1 (Revenue and Margin by Product)

• s2 – Series 2 (Avg Margin by Product Group)

Estimated profit uplift (in value) if the SKU margin is moved toward the midpoint between the SKU’s current average margin percent and the product group’s average margin percent.

Relative uplift potential compared to current profit, assuming the SKU margin moves to the midpoint between the SKU average margin percent and the product group average margin percent.

Estimated value uplift associated with applying the midpoint margin target to the SKU’s revenue (expressed as incremental profit value vs. current profit).

Suggested target margin percent for the SKU, based on the midpoint between the SKU’s current average margin percent and the product group’s average margin percent.