Line Value

Line Value

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:

  1. Line Item 1:
    • Unit price: $50
    • Quantity: 3
    • Line Value: $50 × 3 = $150
  2. 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

  1. Revenue Baseline:
    • Provides an unadjusted revenue figure for line items, serving as a baseline for discount analysis.
  2. Discount Impact Measurement:
    • Enables merchants to calculate and assess the impact of discounts by comparing line values with discounted values.
  3. Sales Strategy Insights:
    • Helps identify the contribution of high-value line items to overall revenue.
  4. Transparent Reporting:
    • Supports detailed financial reporting by showcasing pre-discount sales amounts.

How Does Line Value Help Merchants?

  1. Gross Sales Analysis:
    • Tracks the gross revenue from products without the influence of discounts or promotions.
  2. Discount Strategy Evaluation:
    • Acts as a reference point to evaluate how discounts and promotions affect sales.
  3. 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.

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