Margin Problems Usually Start With Bad Numbers, Not Bad Pricing

Most margin problems don’t start with pricing. They start with bad numbers — inventory that isn’t accurate, BOMs that don’t reflect reality, lead times no one believes. So planning compensates, buyers over-order, operations builds buffers, and leadership makes decisions using numbers everyone quietly questions. That’s where margin erosion begins — not in finance, not in sales, but in the gap between what the system says and what the floor knows.

Before trying to improve margin, there’s a harder question to answer first: do you trust the data driving your decisions? If not, you’re not managing margin. You’re reacting to it.

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Lee Stout