The Inventory Markup Tool

by Sivahn Barsade


Last fall, hospital manager Justice Moench and the team at Pruyn Veterinary Hospital spent three painstaking weeks in AVImark reconciling their inventory. Vendors had increased the cost of various products like medications and parasiticides, but Pruyn’s system did not reflect the changes, and it was having a real impact on their bottom line.

And they were not alone. Every year, hospital managers across our community are challenged with manually tracking a flurry of vendor price increases that require hours to review.

To help make their lives a bit easier, the Category Management team developed the Inventory Margin Calculator to provide current, accurate cost information on top inventory products so hospitals can maintain their product margins.

Here is how the tool works:

  • Our team pulls your hospital’s data from AVImark
  • We identify your 100 top-selling SKUs, and then look up the current cost
  • You then receive a spreadsheet that contains:
    • Up-to-date unit cost
    • Current cost in the HSAH portal
    • Pricing suggestions for each SKU

To optimize the tool, we partnered with 30 hospitals in our community. Hospitals who participated in the trial gained an average of $10,000 to $15,000 in incremental EBITDA annually.

This fall, we rolled out the Inventory Margin Calculator to all divisions. As of January, 345 hospitals have used the tool to review margins of their most popular items. For some hospital managers, the tool confirmed what they already knew about their inventory markups, but for many others, it helped identify items listed at lower, incorrect or out-of-date prices. A few hospital managers even discovered that they were losing money on certain items because the price hadn’t been updated in so long!

Presently, the tool is only available to hospitals using AVImark, but we are discussing creating a special version for non-Avimark hospitals in the near future.

Has your hospital not had a chance to use the Inventory Margin Calculator? Reach out to me at for more information on the benefits, implementation, and rollout.

Sivahn Barsade


Support Center | Agoura Hills, CA

Sivahn is part of the Category Management Team and works on piloting new projects to increase medical compliance and narrow the health gap. She and her wife live in Santa Monica with their super friendly, but not-at-all-cuddly, 3 yr old lab mix, Bailey Barley.

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