Eliminating products from a portfolio is often based on margin-only analysis. However, without considering that lower-margin products may actually have a higher profit-per-minute as they are easier to make, you may be inadvertently eliminating profitable products or the "hidden winners." Conversely, you may be pushing the more difficult to make — and therefore more costly — higher-margin products, when in reality you should be eliminating them from your portfolio.
While some products may be vital to key customers, they could also be having a negative impact on your bottom line and you would be better off without them in your portfolio. Maxager offers more accurate profitability analysis -- ranking products by key performance metrics including profit-per-minute, Return on Assets (ROA), total cash, and profit in addition to revenue and margin.
- Uncover the low profit-per-minute and ROA products that generate cash below your target levels and thus are candidates for rationalization
- Identify higher-ROA products for product substitutions
- Align marketing programs, sales initiatives and pricing on the most profitable products to maximize future cash contribution and ROA
Call Today to Inquire About Our 90 Day "Fast Track" Program.
New customers typically begin reaping benefits within 30 days.
Call +1.888.MAXAGER or +1.415.454.1000 (International).