Concept · article 06 of 14

Spotting
margin drift.

When one product's margin slips week over week. The insight tag that flags it, and what to check first.

Ibrahim Ölmez Ibrahim ÖlmezFounder · nouz · 6 min read · Updated this week
A slow leak, not a crash. Margin drift is when a product's contribution slowly shrinks over weeks. Easy to miss day-by-day; obvious in the four-week trend.

Margin drift is the silent killer of small-shop profitability. Costs creep up by a few percent, you don't pass them through, the margin shrinks invisibly over months. The drift insight surfaces this before it becomes a real problem.

01 What margin drift is

A product's margin contribution is its sale price minus VAT minus COGS, multiplied by units sold. Margin drift is when that contribution shrinks week-over-week without an obvious cause — sales steady, but margin per unit slipping.

02 How nouz flags it

In the Insights panel on Statistics, a margin drift tag fires when a product's per-unit margin drops by more than ~10% over a four-week rolling window. The card shows which product, which direction, and the per-unit change. You can click in for the chart.

03 What to check first

Three causes, in order of likelihood:

  • COGS crept up — your supplier raised wholesale prices, but your product's COGS field still says the old number. Update it.
  • Sale price stayed flat — costs went up, you didn't pass them through. Decide whether to.
  • Mix shifted — you're selling more of the cheaper variant. Not technically drift, but reads similar.

04 Fixing drift

Once you've identified the cause, the fixes are short:

  • If COGS crept up: open the product, bump the COGS field, save. Future sales use the new value. The drift insight will dim within a week.
  • If sale price needs to follow: raise the price by enough to restore margin. Most owners under-raise prices; the drift insight is a license to fix that.
  • If mix shifted: consider whether you want to push the higher-margin variant more, or accept the lower-margin reality.
Drift is healthy to act on. A 10% margin slip across the top three products is hundreds of euros a month for a small shop. The insight tag is the canary — the action is yours.

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