Home Business Initiatives Profitability Product Profitability
Product profitability, simply defined, is the difference between the revenues earned from, and the total costs associated with, a product over a specified period of time. Typically a very small percentage of your firm’s best products account for a large portion of your net profits. Conversely, a small percentage of your products usually cost more to offer than the revenue they deliver. These unprofitable products detract from overall firm profitability. Profit winners and profit losers are a natural consequence of the variability in the revenues and the true costs related to certain products. With product profitability insight, you benefit from knowing exactly which products create value, which destroy value and why.
Quick Links: Growing Revenues Profitably I Reducing Costs I Improving Operational Efficiencies I Retail I Consumer Products Manufacturing I Distribution and Logistics I Customer profitability I Product profitability I Vendor profitability