What does this facing earn?
A facing is paid for in margin dollars per week, not in margin percent. A $40 honey at 50% selling two a week earns $40; a $7 kombucha at 60% selling sixty earns $252. Enter the item and see what it earns, what it would take to match the department, and where the trial target should sit.
Enter the shelf price, landed cost and expected units a week. The facing's weekly margin dollars and the trial-window total fill in.
| Item | Margin | Units / wk | $ per facing |
|---|---|---|---|
| $40 honey at 50% | $20.00 | 2 | $40.00 |
| $7 kombucha at 60% | $4.20 | 60 | $252.00 |
The honey has the better margin and the worse facing. Margin percent flatters slow items; margin dollars per facing per week does not. The buyer playbook sets the rule.
Margin $ per facing per week = (retail − landed cost) × units per week ÷ facings. It is the only number both sides of a ninety-day review agree on, because a high-margin item that does not move and a thin-margin item that flies both show up honestly.
Set the target when the PO is cut, not after. Compare the result with the items around it on the same shelf: if the facing earns less than the department median, it needs a written reason to stay (traffic, halo, a tasting calendar) or it exits at the review.
The department median is yours to enter: every store's is different, and the book's figures are modeled. The margin ranges come from the department targets; the rule comes from the buyer playbook.