What is Average Unit Margin (AUM)?


What is Average Unit Margin (AUM)?

Average Unit Margin is a merchandising KPI that measures the average gross margin of a single unit of a particular product or SKU.

Here's Sean Corson, Daasity's Chief Analytics Officer for more:

Average Unit Margin Formula

To calculate AUM, divide gross margin of a particular product by the number of units sold of that product:

average unit margin formula: gross margin of a product dividd by units sold

Remember that when you plug your data into a formula, you must be using data from the same time period. Otherwise, the calculation/metric will be inaccurate.

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