Learn how product mix changes can affect your overall business revenue and profitability performance in a big way.
- Let's discuss now product mix…and how it impacts the profitability of your company.…We've looked at pricing,…we've looked at cost,…but that's only part of the story.…That's the story of each product in itself.…For example, when you have fine tuned pricing and cost,…you have prepared your product…to be as efficient as it can be in the marketplace.…It's price should be positioned correctly…based on factors such as…your brand, it's quality,…functionalities, and competition.…
It's cost should be the leanest possible…without negativity impacting customer satisfaction.…There's another angle you can plan…to make even more profit,…and that's working with product mix.…The logic behind it is that…each of your products…don't have the same profitability.…Some are more profitable than others,…and if you were to sell more of those,…you would boost even more your profitability.…So, the plan then is to arrange your portfolio of products…to make sure you grow…your highly profitable products faster.…
And let's be clear here.…We're talking about growing the products…
- Identify the purpose of cost-accounting.
- Define product profitability.
- Determine your baseline.
- Gather revenue and cost information for your analysis.
- Connect targets with profitability.
- Build your target baseline.
- Analyze pricing.
- Calculate probable product profitability.
Skill Level Intermediate
Excel 2016: Financial Functions in Depthwith Curt Frye2h 38m Intermediate
1. Understand Company Costs Related to Products
2. Determine Your Baseline
3. Plan for the Future
Analyzing your pricing3m 1s
Next steps1m 21s
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