Product/product-line profitability analysis
Questions to Ask
Description of Service
A system of determining the financial profitability of various products (services) and/or product (service) lines and developing a financial profit plan that you can use to estimate the impact of today's business decisions on future operations and compare results with that of the plan.
A men's apparel manufacturer desired an analysis of the different product lines with the intention of improving margins and/or reducing unprofitable products. Results -- Several lines were identified which lead to an incremental re-pricing with their customers and improved profitability.
A floor covering distributor desired to raise the profitability of remote distribution centers through an analysis of their respective profitability and contribution to headquarters operations. Results -- Three remote warehouses were closed and the remaining inventory was consolidated in the remaining four distribution centers raising profitability markedly.
All contents Copyright © 1997, 1999, 2000 David Norman & Associates. All Rights Reserved.