Orders by Item Summary – Report Analysis
Overview & Key Findings
This report summarizes sales activity by product category and item. For the reported period:
- Total Sales Revenue:
- $3,900,896.62 (3,849 total units/orders sold)
- Core Revenue Drivers:
- Highest income is from Inventory Items ($3.0M, 76.9%), especially LIVING ROOM and BEDROOM items.
- High-Value Services:
- Large contributions from non-inventory maintenance/repair services (notably, Sofa/Chair Recovering Service at $571,748.85 for just 3 transactions).
- No Discounts Reported:
- No discounts applied in the reported period (all $0.00).
Key Performance Indicators (KPIs) & Ratios
| KPI / Ratio |
Current Value |
Explanation |
| Average Revenue per Item (Unit) |
$1,013.61 |
Total Revenue / Total Quantity Sold: Indicates average "ticket size" per unit/article sold.
= $3,900,896.62 ÷ 3,849
|
| Inventory Item Contribution |
77% |
Proportion of Revenue from Inventory Items: Measures dependency on core merchandise.
= $3,003,047.56 ÷ $3,900,896.62
|
| Service Revenue Ratio |
6% |
Share of Revenue from Service Items: Indicates diversification with services.
= $232,593.89 ÷ $3,900,896.62
|
| Top-3 Items Revenue Share |
41.5% |
% of total sales from Joria Sofa, Regashi Bedroom Set, Sofa/Chair Recovering Service.
$465,251.80 + $554,129.71 + $571,748.85 = $1,591,130.36 (41%)
|
| Single-Order High Value |
Up to $150,000 |
Largest single-order items (e.g., Leonardo Sofa), indicates occasional "big ticket" sales.
|
Category & Item Analysis
| Category |
Total Qty Sold |
Total Revenue |
Key Observations |
| BEDROOM |
259 |
$776,284.64 |
- High-value pieces: Regashi Bedroom Set ($554K for 112 units).
- Solid mid-high price point on other beds ($68K–$150K).
|
| CARPETS/FLOORCOVERINGS |
427 |
$24,962.07 |
- Very low average sale per unit. Mondrian Rug: 415 units sold, only $10.5K total.
|
| DINING ROOM |
231 |
$627,414.97 |
- Parsons Dining Table: $397K for 11 units, extremely high per-unit value ($36K+ each).
|
| LIVING ROOM |
1,281 |
$1,345,245.65 |
- Major driver: Joria Sofa ($465K, 852 units).
- Single-ticket high: Leonardo Sofa ($150K for 1 unit).
- Metropolitan Sofa ($390K for 124), Convertible Sofa ($153K for 70), both high-value contributors.
- Suede Bench: high volume (182 units), low value ($12.7K).
|
| OFFICE FURNITURE |
787 |
$227,193.23 |
- Dominated by High Back Chair sales (750 units, $224K).
|
| Non-Inventory (Including Maintenance & Repairs) |
5 |
$665,255.17 |
- Sofa/Chair Recovering Service: $571K for just 3 orders, unusually high (outlier).
- Other services (extended warranty, sofa repadding) are also high in value.
|
| Service (Home/Office Design) |
856 |
$232,593.89 |
- Large volume of Office Fitout/Furniture Consultation (854, $175K).
|
Notable Items & Transactions (Potential Risks/Concerns)
- Sofa/Chair Recovering Service: $571K revenue for only 3 transactions.
Potential concern: Unusually high unit price. Confirm if this is a data entry error or one-off large B2B service order.
- Parsons Dining Table: $397K from 11 units = ~$36K/item.
High-value product; validate pricing is consistent and justified.
- Leonardo Sofa: 1 unit, $150K.
Flag for review — is this a standard product?
Trends, Anomalies, and Risks
-
Revenue heavily concentrated on a few items: 41%+ of all revenue from 3 products/services.
-
Diversification risk: With high-revenue single transactions (especially in non-inventory/services), the company strongly depends on a few large clients/orders.
-
High inventory turnover on sofas: Joria Sofa (852 sold), High Back Chair in office (750 sold) — good for cash flow if margins are solid.
-
No discounts applied: May indicate lost opportunity for volume sales or price insensitivity in customer base.
-
Low-value, high-volume risk: Mondrian Rug, Suede Bench — high quantities, low revenue.
Margin review recommended to ensure they are profitable.
Actionable Insights & Recommendations
- Investigate and validate outlier transactions, particularly single or low-quantity, high-value service or product sales (e.g., Sofa/Chair Recovering Service, Parsons Dining Table, Leonardo Sofa).
- Consider segmenting discount strategies; offering discounts on low-turnover or low-value/high-volume items may improve revenue mix and overall gross margin.
- Monitor dependency risk on big-ticket items and services; diversify revenue across more products/customers to reduce volatility.
- Analyze product margins for low-priced, high-volume goods—phase out or re-price unprofitable items if necessary.
- Continue expansion in service offerings (home/office design) which are showing early traction.
Visualizations
Overall Financial Health Summary
The company shows robust revenue, led by strong furniture item sales and select high-value services. However, dependency on a handful of large-value transactions poses risk: a small number of items and clients account for a disproportionately large share of revenue. There is also an unusually high price recorded for a few service items—these must be confirmed for accuracy.
Inventory turnover for core items appears healthy, but the lack of discounts suggests possible price inflexibility, or unoptimized pricing strategies. High-volume, low-revenue items should be evaluated for margin contribution.
Action needed: Diversify the revenue base, validate the integrity of outlier transactions, and review sales/pricing strategies for low-margin goods.