What is Line Value?
The Line Value represents the total price of a line item before any discounts are applied. It is calculated by multiplying the original unit price of a variant by the quantity of items in the line. This measure is available in both shop currency and presentment currency.
Practical Example of Line Value
Scenario:
- Line Item 1:
- Unit price: $50
- Quantity: 3
- Line Value: $50 × 3 = $150
- Line Item 2:
- Unit price: $30
- Quantity: 5
- Line Value: $30 × 5 = $150
Total Line Value for the order = $150 (Line Item 1) + $150 (Line Item 2) = $300
Why This Matters to Your Business
- Revenue Baseline:
- Provides an unadjusted revenue figure for line items, serving as a baseline for discount analysis.
- Discount Impact Measurement:
- Enables merchants to calculate and assess the impact of discounts by comparing line values with discounted values.
- Sales Strategy Insights:
- Helps identify the contribution of high-value line items to overall revenue.
- Transparent Reporting:
- Supports detailed financial reporting by showcasing pre-discount sales amounts.
How Does Line Value Help Merchants?
- Gross Sales Analysis:
- Tracks the gross revenue from products without the influence of discounts or promotions.
- Discount Strategy Evaluation:
- Acts as a reference point to evaluate how discounts and promotions affect sales.
- Product Pricing Validation:
- Helps merchants analyze whether the original prices align with customer purchase patterns.
Why Include Line Value in Dashboards?
- Gross Revenue Insights: Provides visibility into the unadjusted revenue, essential for understanding sales trends.
- Discount Impact Tracking: Use it alongside measures like Line Discount and Line Discounted Value to evaluate discount strategies.
- Product-Level Performance: Identifies which products generate the highest pre-discount revenue.
Analyzing Line Value with Different Dimensions
Merchants can analyze line values by:
- Product Categories: Identify the categories contributing most to gross sales.
- Order Channels: Compare pre-discount sales across online and offline channels.
- Time Periods: Evaluate gross revenue trends over specific periods like months or quarters.
How Line Value Interacts with Other Measures
- With Line Discount:
Understand the proportion of discounts applied to the total price. - With Line Discounted Value:
Highlight the difference between the original and post-discount prices to measure promotion impact.
Why Should Merchants Monitor Line Value?
- To evaluate pricing effectiveness and ensure products are priced optimally.
- To measure promotion dependency by comparing gross sales with discounted values.
- To provide stakeholders with accurate pre-discount sales figures for financial planning and reporting.