Forgetting to Adjust Prices When Costs Change (The Silent Profit Killer Most Businesses Miss)

Supplier pricing changes constantly — shipping, materials, packaging, and wholesale costs never stay still for long. The real danger isn’t the cost increases themselves. It’s what happens when those changes never make it into your selling prices inside QuickBooks Online.

That gap is where margins quietly disappear.

Small Cost Changes Add Up Fast

A supplier raises a cost from $10.00 to $10.25.You think: “It’s only 25 cents.” But at 2,000 units per year, that small bump wipes out $500 in margin from one SKU alone.

Repeat that across 20, 50, or 200 SKUs…Now you’re looking at thousands in silent margin loss.

Why It Happens So Often

Updating prices feels tedious. Cost changes come in at random times. QBO doesn’t proactively notify you when costs increase or margins drop. Emails get buried. Invoices pile up.

So the problem grows until something forces you to look.

How to Fix It: Practical Steps You Can Start Today

Here’s the expanded value section you requested — actionable, simple steps business owners can apply immediately to protect margin. These position your tool as the smarter next step, not the only step.

1. Set a Monthly “Cost Review Day”

Most businesses never review costs on a schedule — they wait for problems.

Pick one day each month to:

• Compare previous supplier invoices with the latest ones

• Review cost changes for your top-selling SKUs

• Spot any subtle increases

• Flag items that need a price review

This turns pricing from reactive to proactive.

2. Prioritize Your Top 20% of Products First

Updating all SKUs at once is overwhelming. But updating the ones that make you the most money? Huge impact.

Follow the 80/20 rule:

• Identify your top 20% revenue SKUs

• Review their costs monthly

• Ensure those prices are never outdated

This protects the bulk of your profit with minimal effort.

3. Organize Supplier Emails with a Simple System

Most cost increases get buried in your inbox.

Create a rule in your email:

• Auto-label anything with “price update,” “increase,” “adjustment,” “new rate,” or supplier names

• Auto-drop them into a “Supplier Pricing” folder

Now you have a single place to check for changes.

4. Track Cost Changes With a Lightweight Sheet

You don’t need a big system — a small tracker works:

Suggested columns:

• SKU

• Old Cost

• New Cost

• % Change

• Date Updated

• Updated in QBO? (Yes/No)

This keeps the process organized and cuts down the mental load.

5. Use Margin Targets Instead of Guesswork

Most businesses update prices based on feel:

“Eh… $19.99 looks OK.”

But margin-based pricing removes emotion. Set target percentages:

• 30% minimum margin for lower-priced items

• 40–50% for mid-range

• 50–65%+ for specialty items

Then check: "Did the new cost drop my margin below my minimum?”

If yes, update the price.

6. Run Quarterly Margin Reports in QBO

Most don’t realize QBO already shows margin, but buried inside product/service reports.

Run quarterly:

• Sales by Product/Service Detail

• Profitability by Product

• Item Profitability Summary

Then filter for:

• Low-margin items

• High sellers with slipping margin

• SKUs whose gross margin dropped YoY or quarter-over-quarter

This gives you clarity — but it is time-consuming.

Where These Steps Break Down

These steps work, but…They take time. They require discipline. They rely on memory. And they’re easy to fall behind on.

Even with a system, you still must:

• Check each SKU manually

• Compare cost vs. selling price

• Look for drops

• Identify risk items yourself

• Track increases across all suppliers

And that’s where things break down for busy businesses.

How The Pricing Assistant Makes This 10× Easier

Your software steps in right where most of these manual processes fail.

Here’s what it does:

✅ Alerts you when margins fall below your threshold

No more hunting for problems — they come straight to you.

✅ Flags SKUs where your cost increased

You don’t have to dig through invoices or emails.

✅ Instant visibility across your entire catalog

You can see problem products immediately — in seconds.

✅ Helps you focus your time where it matters most

Instead of updating everything, you update only what needs it.

It doesn’t automate the pricing for you —But it gives you the visibility, clarity, and control QBO simply doesn’t offer.

Bottom Line

Forgetting to adjust prices isn’t a minor oversight —It’s one of the biggest silent profit leaks in product-based businesses.

The solution starts with:

• A routine

• Better tracking

• Margin awareness

• And a system that spots issues automatically

That’s exactly where The Pricing Assistant delivers value: It helps you see the problems early so you can fix them before they cost you thousands.

Want an Easier Way to Stay on Top of Margins?

The Pricing Assistant can help. It automatically flags low-margin items and cost increases so you always know which products need attention.

👉 Check it out here: thepricingassistant.com

A simple way to protect your margins — without adding more work to your day.