Expected Gross Profit

Calculating actual GP is great for forecasting and assessing profitability. But it is also very useful to be able to work out an Expected GP to compare against the actual, to see if there are immediate problems with wastage, breakage, freebies, theft, incorrect delivery notes/invoicing, etc.

First click on the "Expected GP" button, and then enter the sales mix % of your 3 highest selling categories of products. For a bar some of those categories might be: draught beer, bottle beer, wine, spirits, soda. For a convenience store they might be sweets, crisps, cigarettes, soda, sandwiches, ice cream, toiletries, etc.

Then enter the top selling items in each of those sale mixes. This will calculate an estimate of what to expect from your gross profit. If your actual GP% is a lot different than your Expected GP% then you know you should be spending time investigating. Things like wastage and theft can sadly get very high if it is not monitored, and inaccurate invoicing vs supply can be devastating, so aim if possible to do an Expected GP at the same time you calculate the stock result.