The Profits and COGS (Cost of Goods Sold) report tracks the financial performance data and details earnings/expenses, helping dispensaries measure profitability. It calculates gross profit by deducting the cost of goods sold from total revenue, providing insights into sales margins and business viability. This report is a valuable resource for cannabis retailers to manage costs effectively, make pricing decisions, and cultivate sustainable profitability in a competitive market.

The Profits and COGS (Cost of Goods Sold) report offers a vital set of Key Performance Indicators (KPIs). These six KPIs serve as powerful tools for gaining a comprehensive understanding of your store's performance and are essential for making informed decisions to optimize your business strategies.

By focusing on these six KPIs, you can gain a holistic view of your Retail Cannabis store's performance, enabling data-driven decisions to enhance your overall profitability and customer satisfaction. These metrics empower you to adapt, optimize, and grow your business in the dynamic cannabis retail landscape.

Here's a breakdown of each KPI:

Net Sales is the total revenue generated from the sale of cannabis products, after accounting for returns and allowances. It represents the income earned directly from your sales.

Gross Profit is the difference between your Net Sales and the cost of the cannabis products sold. It's a key indicator of your profitability before accounting for other operating expenses.

Gross Margin is expressed as a percentage and is calculated by dividing Gross Profit by Net Sales. This KPI reveals the proportion of revenue retained after covering the cost of goods sold.

Discounts represent the total value of price reductions or promotions applied to sales. Monitoring this KPI is crucial to understanding the impact of discounts on your bottom line, helping you evaluate the effectiveness of marketing and pricing strategies.

This KPI reflects the percentage of orders that include one or more discounts. Tracking this metric allows you to gauge the extent to which discounts are utilized in your store's transactions, helping you adapt your promotional tactics accordingly.

The Average Discount Percentage calculates the average rate of discount applied to orders. This KPI provides insights into the average price reduction customers receive, helping you fine-tune your discount strategies to maximize sales and profitability without eroding your margins.

The Profit and Loss report provides a waterfall visualization of a business's financial performance over a specific date range. Waterfall visualizations are used to show the changes in the value as a process and are often used to visualize Income Statements. The visualization starts on the left with Gross Sales, then subtracts Discounts and Returns followed by the Cost of Goods Sold. The final column on the right is the Gross profit. There are several sets of data to review in this chart, let's take a look:

Revenue (Net Sales) is the total income generated from the sale of products or services.

Discounts are reductions in the selling price offered to customers, often as part of promotions or special offers.

Returns represent the value of products or services that were returned by customers for various reasons, such as defects or dissatisfaction.

The cost represents the total cost of goods sold (COGS), which includes the expenses associated with producing or purchasing the products you sold.

Gross Profit is the difference between the revenue and the cost of goods sold. It's a critical metric that reflects the profitability of your core business operations.

This graphic represents a month-by-month breakdown of key performance metrics for the selected license(s). It includes the Gross Margin Percentage, Average Order Size in dollars, and the Percentage of Orders with Discounts. These metrics help assess a business's profitability, customer spending behavior, and the effectiveness of discount strategies over time. The data can be used to track trends, make data-driven decisions, and fine-tune business strategies for optimizing profitability and customer satisfaction.

The Category Breakdown chart is a valuable tool for analyzing the performance and profitability of different product categories within your Retail Cannabis business. This chart provides a detailed breakdown of key financial metrics for each product category, enabling you to make informed decisions and optimize your product offerings. Let's dive into the essential components of this report:

The Category column lists the specific product categories in your Retail Cannabis store.

Net Sales represent the total revenue generated from the sale of products in each category.

CoGS represents the total cost associated with producing or purchasing the products sold in each category.

Gross Margin Percentage is a key profitability metric. This percentage indicates the proportion of revenue retained as profit after covering the cost of goods sold.

Discounts represent the total value of price reductions or promotional discounts applied to sales within each category. It reflects the monetary value of discounts offered to customers.

Percentage of Discount is calculated by dividing the Discounts by Net Sales for each category and multiplying by 100. It quantifies the proportion of revenue that was reduced due to discounts.