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Product/Service Profitability

It’s hard enough running a business without having to navigate all the complexities around payroll.

Constantly changing payroll legislation and the time demands of actually running a business can leave some employers battling with an ever-increasing burden on their business.

What is it exactly?

What is it exactly?

Product or service profitability is the difference between the revenues earned from, and the total costs associated with a product or service over a specified period of time.

All relevant costs are traced to products or services and then matched to the corresponded revenue. Such analysis can inform management on a wide range of decisions such as pricing, or portfolio analysis.

Why Hire Us?

A clear view of which products / services are cost effective, in addition to managing current results the analysis can refine strategies

Real time analytic view of what discounts can be given to customers whilst accurately assessing the impact on margins to ensure margin protection

Provides what if analysis for changes in cost base or demand allowing re-forecasting of performance

Identify areas of growth in margin not just in revenue and accurately forecast profitably of new products or services

What is the process?

The process of implementing product or service profitability starts with outlining the product or service you offer and the income you receive for each of these.

All of your costs ranging from materials, to salary to utilities are charged to the product based on an apportionment you desire, examples of apportionments can include time or building space.

Here’s what we do exactly

Base cost is calculated for each product group

Overheads are charged out to products so total cost can be ascertained

Total costs are compared to income for product groups

Can be offered as a one-time service but regular reviews recommended

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