Profitability Analysis
Revenue is growing but profit is not? We calculate what each product, client, and business line really earns — with full costs, not just markup — so you know what to grow, what to reprice, and what to drop.
When you need this service
Revenue is high but profit is thin — and nobody knows where it disappears.
Prices were set by looking at competitors, not at your own costs.
Some clients demand enormous effort, and nobody has checked whether they pay off.
Discounts are given by negotiation, not by calculation.
What you get
Profit by product and service
True profitability of each product with full costs, not just gross margin.
Client profitability ranking
Which clients earn you money — and which ones you are effectively paying to serve.
P&L by department and business line
A separate profit and loss view for every line of business.
Pricing and discount recommendations
Where prices can rise, where discounts destroy profit, and what to reprice first.
Monthly management report
One page with the key conclusions — not a 40-page spreadsheet.
How we work
Collect the data
Revenue, costs, and time spent by product and client, from your existing systems.
Cost allocation model
A fair, transparent model for how indirect costs spread across products and clients.
Calculate and validate
We review the results together with you — so the numbers can be trusted.
Recommendations and upkeep
Concrete decision proposals and a regularly refreshed report.
Frequently asked questions
How do you allocate indirect costs?
We pick an allocation basis that fits your business — labor hours, volume, or revenue — and agree on it with you, so the model is fair and understandable.
Does this work for a services company?
Yes — in services, client profitability often matters even more than product profitability, because the main cost is your team’s time.
How often is the report refreshed?
Usually monthly. The full model is built once; afterwards refreshes are fast and need very little of your team’s time.
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In a free consultation we will show what profitability analysis would look like for your products and clients.