20d (edited) • 1 Minute MBA (Fashion Edition)
What is AUR? [Hint: Pricing Power]
Average Unit Retail (AUR): This is one of the most important numbers in fashion and a lot of people still misunderstand it.
Definition:
AUR = Total revenue ÷ Units sold
If you sell £100,000 across 1,000 units, your AUR is £100.
Why it matters
AUR tells you the quality of your revenue.
- If AUR is rising = you are selling higher-value product or discounting less
- If AUR is falling = you are discounting more or shifting into lower-value product
What most people miss
Revenue can grow while AUR falls which means you look like you are scaling but you are actually weakening your margin. This is often how brands quietly get into trouble.
Bottom line
Strong brands protect AUR. Because AUR is pricing power in disguise. If you lose control of AUR, you lose control of your brand.
Discussion
- Are you currently tracking AUR weekly?
- If yes: what’s driving it up or down in your business right now?
- If not: what’s stopping you?
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What is AUR? [Hint: Pricing Power]
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