Avisen | Business Initiative - Product Profitability | avisen.com

Product Profitability

Do you know the profitability of each of your products?

To remain competitive, companies must be able to identify those products that are least profitable, which can be a complicated task when there are huge product lines, operational complexity, multiple vendors and diverse customer requirements.

Without a clear understanding of which products are making or losing you money and why, your pricing strategy could take you in a dangerously unprofitable direction.

Avisen partners with businesses to look beyond revenue and gross margins, uncovering hidden profits and losses. By factoring in the real costs associated with each product, clients are able to make adjustments – operational and financial – that favorably impact their bottom line.  Product profitability management has evolved from revenue based to net profit based meaning that decision makers now have access to a very different picture of profitability.

Areas of focus include:

  • Category Management
  • Costing Analysis
  • Market Basket Analysis
  • SKU Rationalization
  • Vendor Negotiations

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