Excessive discounting

Just today, I was going over some figures with a client where data mining displayed excessive discounting. When we went over it what you could see was their discounts on products over the years were going up. This probably would not be so serious except the margins were not that outstanding. It looked actually better when we went over the details as it was the high-margin giftware items that were affected. Still it was causing a declining trend in their profit margins.

It turned out that much of the reason was buying excess stock from one giftware supplier whose products did not sell that well. It was not an error you expect to pick up but, which suddenly appears when your data mine.

What I suggest you do is run the following report to see whether you do have a discounting problem.

Press transaction enquiry as highlighed in red, now select the relevant options, it actually, a good idea to do it once and then do it again with different departments that appear and check out the results.

What this shows is that to effectively control your stock, with many items from many suppliers you need a sophisticated sales forecasting software like ours.