Analyze profitability by product or service
Total profit hides which products or services actually carry the business. Analyzing profitability by line shows where to put your energy — and which 'busy' work is quietly losing money.
Do this
- For each product or service, total its revenue and its full cost to deliver.
- Calculate the profit and margin for each line.
- Rank them from most to least profitable.
- Grow the winners; fix the price or drop the losers.
Profitability-by-Line Checklist
- List each product/service line
- Total revenue per line
- Total true cost to deliver per line
- Calculate profit + margin for each
- Double down on winners, fix or cut losers
