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Key Business Analytics by Bernard Marr

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Product profitability analytics

What is it?

Product profitability analytics is the process for discovering profitability by individual product. Most businesses know how profitable the business is but very few take the time to dig deeper into the individual profitability of each product or service they offer. As a result few businesses know which of their products are making money and which of their products are losing money.

In order for profitability analytics to be genuinely meaningful and commercially useful beyond revenue and gross margins, it is necessary to uncover hidden or specific profit and losses pertinent to the product range.

This is, however, much easier said than done. Many businesses have large, complex product lines and ...

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