How to Sell Without Going Below Cost
In the first months of 2022, the prices of numerous raw materials saw significant increases compared to the pre-pandemic period, a situation that drastically worsened with the outbreak of conflicts in Ukraine, due to the importance of the countries involved in global supplies. When observing the variation between the latest available data and the pre-Covid period, notable price increases are evident for gas (+819%), electricity (+492%), and steel (+207%). (Source: Pricepedia.it)
Consequently, there has been an increase in production costs for companies, which have found themselves needing to maintain constant production flows while facing much higher costs than usual, with a high risk of falling below the cost threshold while trying to keep the finished product price competitive.
To help companies cope with this increasingly pressing need, we have decided to introduce the option to set a fixed sales coefficient for each item in our management software, which, calculated based on the costs to be covered, will help margin the expenses.
This coefficient will allow for the automatic calculation of the selling price, taking into account the variations in the purchase price of each item and preventing prices from falling below a certain profit margin.
Available from version 2.4.31