Weighted Gross Profit Margin

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Weighted Gross Profit Margin
Message posted by Jeri (via 208.254.170.178) on February 13, 2002 at 4:51 PM (ET)

I am preparing an analysis that shows the aggregate gross profit margin for each of our product categories at various discount levels. On my weighted version, I factored in the number of units sold last year for each item. However, about 25% of our products are new with no sales history (we have over 9000 products). I believe I should use a weighting factor of "1" for items with no sales history so that they are not completely lost from the aggregate margin, but is that the proper method? This analysis is for future pricing strategies, not past performance.

READERS RESPOND:
(In chronological order. Most recent at the bottom.)

Re: Weighted Gross Profit Margin
Message posted by JG (via 64.12.101.166) on February 14, 2002 at 4:13 AM (ET)

Before the product was introduced an expected sales figure must have been generated.

Re: Weighted Gross Profit Margin
Message posted by Jeri (via 208.254.170.178) on February 14, 2002 at 11:42 AM (ET)

I'm sure the product managers have that info somewhere, but not in the system databases tied to SKU's where I can use it.

Thanks

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