What is COGS and how does it help me?
COGS is sometimes also referred to as ‘cost of sales’ or ‘cost of merchandise’ but in short it refers to the production or purchase costs for products sold in your store.
Technically, these costs are an expense of your business, and in the end they reduce the revenue your store makes from selling.
So far not a big deal, but once your business grows, it might get tricky to keep track of profitability all of your products.
This plugin allows you to plan, simulate and summarize both your costs, stock value and margins in one place in the WooCommerce product pages so you get an instant overview of how your business is doing.
Why would I manage my Gross Margin?
As a store owner, you calculate a variety of figures to determine the health and performance of your business.
One of these figures is Gross Margin, which is an important factor for you when assessing your business risk and profitability or when you are setting prices for your goods or services.
It’s not always easy to understand the impact of changes in cost and sales prices, especially when your stores grows.
In the WooCommerce product pages, we have created a neat overview to track all of these changes and show the final gross margin for all your products.
3 reasons why it’s important to calculate Gross Margin
Knowing the gross margin for your products is essential in assessing your store’s profitability.
That sounds like a no brainer, but in reality it is easier said than done.
Calculating Gross Margin lets you know how much of profit you’ve got in order to meet obligations other than those related to your products and services.
With this plugin, you can create simulations and different scenarios to see the impact of changes in pricing on margin. Instantly.
We have taken the calculation of gross margin a step further by evaluating it on a per product basis.
This can help you determine if higher cost materials have been incorporated into production. Perhaps too much is spent on a particular product.
Your gross margin may indicate a need to use materials at a lower cost, or buy your products at a lower cost. Maybe you need to increase your retail price slightly to make more money.
This plugin will help you to determine just that.
Calculating gross margin is also a key element to knowing your company’s break-even point. Your break-even point tells you the amount of revenue you must make in order for to make your business a success.
Quick Assortments Cost of Goods & Margins is a free plugin that allows track the profit of your store, products and categories.
This plugin seamlessly integrates with WooCommerce and lets you manage cost prices for your items and instantly see the impact of changes on your margins and markups.