In a catalog with dozens or hundreds of SKUs, underpriced products often hide in plain sight — selling steadily, looking healthy on a revenue report, while quietly returning far less margin than they should.
Where to look first
- Products where cost has crept up since the price was last set — a common and easy-to-miss cause
- High-volume sellers, since a small per-unit underpricing multiplies fast at scale
- Products priced mainly by matching a competitor, without checking your own cost structure
A quick audit method
Sort your catalog by margin percentage, lowest first, and cross-reference against sales volume. A low-margin, high-volume product is worth investigating immediately; a low-margin, low-volume product is lower priority.
What to do once you find one
Don’t assume a price increase is the only fix — sometimes the real problem is cost, not price, and negotiating a better input cost solves the margin issue without touching what the customer pays.