Your gross margin imeanguka ghafla?
Usianze kubadilisha prices kwanza.
Investigate.
Because margin ikishuka, usually kuna trail somewhere.
I’d check these 5 things:
When did it start? → Sales → Gross profit → Gross margin %
Sudden drop ya one month? Check what changed that month.
Margin ilipotea wapi? Break it down by: → Product → Customer → Location → Sales channel
Maybe si business yote. Product moja ama customer mmoja ndio anakula margin.
Costs zimebadilika? Check: → Supplier prices → Freight/delivery → Duties → Exchange rates → Production costs
Supplier ameongeza cost by 20% lakini selling price haijabadilika? There’s your clue.
Books ziko sawa? Reconcile: → Purchases vs supplier invoices → Stock vs inventory records → COGS vs stock movements → Sales vs invoices → Discounts vs approved prices
Sometimes margin haijaporomoka.
Costing ndio imeharibika.
Then make ONE decision.
Costs zimepanda → reprice/negotiate.
Discounts zinakula margin → tighten controls.
Product mix imebadilika → review what you're selling.
Stock records ziko wrong → fix the process.
Because here's the thing:
Unaweza kuuza more.
Revenue ipande.
Gross profit in Ksh ipande.
Lakini margin percentage ishuke.
