Profitability Analysis.
Profitability analysis shows which products, services, customers, channels or locations actually make money once direct costs, discounts and a fair share of overheads are allocated. We build contribution and fully loaded margin views so that pricing, product mix and customer decisions rest on evidence rather than on revenue alone.
Typically 4–6 weeks, depending on the number of segments and how granular your sales and cost data is.
A partner — a chartered accountant or company secretary — from the first call to sign-off.
Based on your situation, and fixed in writing before any work starts.
Is this for you?
- Businesses with many products, services or customer accounts and flat overall margins
- Companies reviewing pricing, discounting or channel strategy
- Multi-location businesses deciding where to expand or consolidate
What you receive at the end.
- 01Segment profitability model in Excel, with allocation logic documented
- 02Product, customer and channel margin reports
- 03Ranking of segments by contribution and fully loaded margin
- 04Options paper with the financial effect of recommended actions
- 05Segment profitability tab added to the monthly MIS
Profitability Analysis, step by step.
Typically 4–6 weeks, depending on the number of segments and how granular your sales and cost data is.
- 1
Define segments
We agree the cuts that matter (product, customer, channel, location or project) and the level of detail your data can support.
- 2
Map costs
We trace direct costs to each segment and agree allocation keys for shared costs such as logistics, sales effort and overheads.
- 3
Build margins
We calculate gross margin, contribution and fully loaded profit by segment, including discounts, returns, freight and credit costs.
- 4
Insights and options
We identify loss-making and low-margin segments and model options such as repricing, minimum order sizes, revised terms or exit.
- 5
Embed in MIS
We add the segment view to your monthly MIS so you can track the effect of the decisions taken.
What we need from you.
Don't have everything yet? We send a short checklist after the first call and work with what you have.
- Sales register with product, customer and location detail
- Cost of goods or bill of materials data, and purchase prices
- Expense ledgers and payroll by department
- Discount, rebate, returns and freight data
- Price lists and key customer contracts
The fee depends on your situation. After a short call, the partner who will do the work tells you what's involved and gives you a fixed fee in writing — before any work begins.
- Government fees and statutory charges are billed at actuals.
- When you pay — upfront, in stages or on completion — is agreed in writing with the fee.
Questions about Profitability Analysis.
Ready to discuss Profitability Analysis?
30-minute confidential call — no proposal, no commitment. A partner will write back within one business day.