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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.

Dave loves words, wordplay, and he has the audaasity to use a pun in his bio. Dave runs content at Daasity, and he works to make sure that as many people as possible understand how a data-driven business is a better business. Outside of work, he can be found studying languages, lifting things up and putting them down, and tending to his citrus trees.

Special thanks to our friends at Daasity for their insights on this topic.
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