What is Potential Revenue Loss?
Potential Revenue Loss represents the estimated revenue your business might miss out on due to inventory stockouts. This calculation helps you prioritize which products to restock first and understand the financial impact of inventory shortages.
The Calculation Formula
Fabrikatör calculates Potential Revenue Loss using the following formula:
Potential Revenue Loss = (Potential out-of-stock days) × (Daily average sales) × (Sales price)
Where:
Potential out-of-stock days: The projected number of days a product will be unavailable
Daily average sales: The average daily sales quantity based on your defined forecasting period
Sales price: The product's current sales price
Accessing Potential Revenue Loss Reports
Method 1: Control Center View (Product Group Level)
Navigate to the Control Center in your Fabrikatör dashboard
Find the Potential Revenue Loss widget
Review the displayed products
⚠️ Important: The Control Center displays Potential Revenue Loss at the product group level, not at the variant level. This means that even if a specific variant isn't at risk of stockout, its product group might still show potential revenue loss.
Method 2: Detailed Variant-Level Analysis
For a more granular view at the variant level:
Navigate directly to the Potential Loss Report from this link
Use the dimension selector to adjust to variant level
Review the detailed breakdown for each product variant
Interpreting the Results
Higher Potential Revenue Loss figures indicate:
Products that significantly impact your revenue
Items that should be prioritized for restocking
Lower Potential Revenue Loss figures might indicate:
Products with lower sales volume
Items with adequate safety stock
Categories that can be restocked less urgently