I worked with a company that waited until the books closed to determine whether they were profitable that month. When I asked about profits by product and customer, I got a blank stare.

It doesn’t have to be complicated initially but it’s one of the most valuable analytics you can perform.

Some products may generate a lot of revenue but their expenses offset and cause very little profit. Discounting only exacerbates the problem.

Same for customers. Higher profile customers can also consume much more time, effort, and discounts that ultimately consume profits.

Whether you’re discounting, providing volume pricing, or any other form of lower price, make sure you understand your profitability by product, customer, and projects.

Rich Hall

Business Coach

Rich Hall Group

Originally Published on https://www.richhallgroup.com/blog

Rich Hall Certified Exit Planning Advisor | Business Advisor | Baby Boomer

Rich is a Certified Exit Planning Advisor (CEPA) and business advisor with substantial experience in business coaching, advising, leadership development, business valuation, value acceleration, succession planning, and more. Rich is also a certified Baby Boomer!

​He is a member of Silver Fox Advisors, facilitates CEO Roundtables and nationwide mastermind groups. He was recognized as one of the Top 15 Coaches in Houston in 2022.

​Rich earned his undergraduate degree in Management Science from Georgia Tech, his MBA from the University of Houston, and his CEPA certification from the Exit Planning Institute.

He is the proud father of three sons, Jeremy, Mark, and Daniel, the grateful husband to his wife Jamie, and best friends with Bucky and Riley (dogs).