How Orderacle Works

The methodology behind your inventory intelligence

πŸ“Š Data Flow

Orderacle transforms raw POS exports into actionable inventory intelligence through a multi-step pipeline:

POS Export
(CSV from Square)
β†’
Parse & Clean
(normalize dates, prices)
β†’
Enrich
(add COGS, categories)
β†’
Analyze
(detect patterns)
β†’
Insights
(actionable alerts)

What We Read From Your POS Export

Field What We Use It For
Date + Time Velocity calculations, day-of-week patterns, seasonality
Item Product identification, name fragmentation detection
Category Category-level P&L, margin analysis
Qty + Net Sales Velocity, revenue attribution, stockout detection
Customer Name Customer concentration analysis, whale identification
Discounts Markdown tracking, promotion effectiveness

⚠️ Stockout Detection

One of Orderacle's most valuable insights: detecting when you ran out of stock and missed sales. Here's how it works:

The Core Insight

If a product was selling consistently, then suddenly stops for 2+ weeks, it's probably a supply gap β€” not a demand change. Customers wanted it; you didn't have it.

Detection Algorithm

1
Calculate Weekly Velocity

For each product, we calculate average units sold per week over the analysis period.

2
Find "Active" Products

We only look at products that were selling at least 1.5 units/week consistently. Low-velocity items have too much noise.

3
Detect Gaps

Find products that went from active sales β†’ zero sales for 2+ consecutive weeks β†’ then either came back or stayed at zero.

4
Estimate Lost Revenue

Gap weeks Γ— pre-gap velocity Γ— average selling price = estimated missed revenue.

Lost Revenue β‰ˆ (Gap Weeks) Γ— (Pre-Gap Weekly Units) Γ— (Avg Price)

Example: Wingspan Holiday Stockout

Metric Value
Pre-stockout velocity 2.9 units/week
Stockout date December 10, 2024
Restock date Never (through Dec 31)
Gap duration 3 weeks
Avg selling price $65
Estimated lost revenue $566

Key insight: December 10-31 is peak holiday gifting season. Wingspan is a top gift game. This stockout happened at the worst possible time.

What We DON'T Flag as Stockouts

πŸ” Name Fragmentation Detection

POS systems like Square don't enforce consistent naming. Your staff might enter the same product three different ways. This destroys your velocity data.

The Problem

You think you sold 15 "Dragon Shield Sleeves" and 12 "DS Sleeves" and 8 "Dragon Shield 100ct." Your top-seller report shows three medium sellers. Reality: you sold 35 of the same product β€” it's actually your #1 supply item.

How We Detect Fragmentation

1
Normalize Product Names

Convert to lowercase, expand abbreviations (MTG β†’ Magic, PKM β†’ Pokemon, DS β†’ Dragon Shield, TTR β†’ Ticket to Ride, etc.)

2
Group by Normalized Name

All POS entries that normalize to the same canonical name get grouped together.

3
Flag Multi-Variant Products

If a normalized name has 2+ different raw POS entries, it's fragmented.

Normalization Examples

// These all normalize to "pokemon surging sparks elite trainer box"
"Pokemon Surging Sparks ETB"
"PKM Surging Sparks Elite Trainer Box"  
"PKMN SS ETB"

// These all normalize to "magic commander deck"
"MTG Commander Deck"
"Magic Commander Deck"
"MTG CMD Deck"

Why This Matters

πŸ’° Margin Calculation

POS exports include revenue, but not cost. To calculate margins, we need Cost of Goods Sold (COGS) for each product.

How We Estimate COGS

1
Product-Level Cost Lookup

We maintain a mapping of product names to wholesale costs. For each POS line item, we look up the cost.

2
Fallback for Unknown Items

For MISC entries or products not in our lookup, we estimate 50% margin (conservative).

3
Aggregate by Category

Sum revenue and COGS by category to calculate category-level margins.

Gross Margin % = (Net Revenue βˆ’ COGS) Γ· Net Revenue Γ— 100

Typical LGS Margins by Category

Category Typical Margin Why
TCG Sealed 15-25% MAP pricing, high competition, low distributor markup
TCG Singles 50-60% Buylist at 40-60% of market, sell at market
Board Games 45-50% Standard retail keystone
Miniatures (GW) 45% MAP pricing but better margins than TCG
RPG Books 50-55% Standard book distribution
Supplies 50-60% High velocity, good wholesale pricing
Events 70-80% Mostly labor cost, prizing is marketing expense

Why This Matters: The Sealed Trap

TCG Sealed drives ~34% of a typical LGS's revenue but only ~21% margin. It feels like your bread and butter, but every $1 of sealed generates only $0.21 gross profit vs $0.50+ for board games. Push high-margin add-ons (supplies, events) to offset thin sealed margins.

πŸ§ͺ Mock Data Assumptions

The demo uses simulated data for "Dragon's Hoard Games," a fictional mid-tier LGS. Here's what we assumed:

Store Profile

Annual Revenue~$650K
LocationCollege town, mid-market
Size1,800 sq ft retail + 600 sq ft play space
Analysis PeriodQ4 2024 (Oct–Dec)

Customer Behavior

Simulated Events

Simulated Stockouts

Simulated Data Quality Issues

πŸ”Œ Real Data Integration

When you connect your actual store data, here's what happens:

Data Sources We Support

POS Systems

Square Supported CSV export or API
Lightspeed Planned CSV export
Clover Planned CSV export

Future: Community Signals

The full Orderacle vision includes demand signals from:

  • Your Discord server: What are your customers talking about?
  • Reddit / social: Regional hype before releases
  • Distributor catalogs: What's available to order

What You'd Need to Provide

1
POS Export (Required)

A CSV export from your POS system covering at least 3 months. We need: Date, Time, Item Name, Category, Qty, Net Sales, Customer Name (if available).

2
Cost Data (Optional but Valuable)

A spreadsheet of your products and wholesale costs. Without this, we estimate margins based on category averages.

3
Discord Server (Optional)

If you want community signal analysis, we'd need read access to your store's Discord.

Data Privacy