Bob Braasch’s Post

Set Pricing Rules: Establish clear pricing rules that will guide your dynamic pricing strategy. For instance, consider increasing prices when demand is high or decreasing prices when inventory is high.

💼 Elevating Prices through Transparency in Demand & Supply: Delve into the art of pricing strategies and grasp the concept of using transparency to create tension and boost prices effectively. 💼 #PricingStrategy #DemandSupply

Set Pricing Rules: Establish clear pricing rules that will guide your dynamic pricing strategy. For instance, consider increasing prices when demand is high or decreasing prices when inventory is high.

LIFO method is Inventory computation method, which brings result lower value of Inventory and if you get result lower in inventory valuation you must get reduction in profit and GP margin always bring lower stated

We must take the cost of raw materials and other costs of production to consider when forecasting gross profit margin. Forecasting gross profit margin can be volatile since the price of raw materials vary from one supplier to another and vary from time to time.

🚚 Why price benchmarking tools may not be the best for improving freight profit margins: Forecasts from price aggregators rely heavily on statistical historic rates, mostly on the assumption that historical trends continue, sometimes with allowance for seasonality. But the largest gains and losses in trading are made when historical trends break, and they break very often!! Freight pricing should reflect the actual state of the demand (real trading) and the lead-lag times in the supply chain and not a statistical gamble. I'd love to hear your thoughts on this #FreightPricing #DemandDriven

We all continue to experience increased prices in everything we purchase today. Sometimes there are things that we can do to impact those costs, and sometimes there are not. But what if there was just one adjustment you could make, that could bring down your price? Especially if the adjustment is minor and doesn't require a large investment of time or resources. In manufacturing, many things are out of our customers’ control, but there are a few areas, where small adjustments can result in improved costs. This 4-minute read may be worth your investment of time to investigate. https://lnkd.in/g_DnSic3

Inventory turnover is a relevant KPI very useful for all type of industries. It can be measured in days or in quantity of times the Stock rotation takes place per year. Basically Inventory turnover is a measure of the number of times inventory is sold or used in a given time period such as one year Calculation: Cost of goods sold / Average Inventory, or in days: 365 / Inventory turnover. In the link published by ReadyRatios.com you can see the Breaking down per industry type (in U.S.) I recommend to have a look to it to compare you sector within a global analysis in order to see how well (or not) are you positioned. Enjoy it ! https://lnkd.in/d57TDqXd

Inflation is changing everything when it comes to material margins. As prices skyrocket, businesses must navigate the challenge of maintaining profitability. Smart cost management and strategic sourcing can help offset rising material costs–check out our blog for more. #Inflation https://hubs.li/Q01T8W_h0

Cost measurement of inventories requires the regular allocation of fixed and variable production indirect costs to actual production units, as follows: - Variable is allocated based on actual production - Fixed is allocated on the basis of the normal production capacity of the entity and as follows: 1- The actual production is less than the normal production capacity, which results in unallocated fixed indirect costs that are recognized as a period expense 2- The actual production is greater than the normal production capacity, and as a result, all fixed indirect costs are allocated to the actual production units but the amount allocated to each production unit decreases.