Overview
The company's top customer by revenue generates €500K annually. The sales team celebrates the relationship. But fully loaded cost analysis reveals: this customer demands custom integrations (€80K engineering), dedicated support (€45K), quarterly business reviews (€15K travel), and negotiated a 35% discount. Actual contribution margin: 8%. The company's tenth-largest customer at €120K generates 52% contribution margin with zero custom demands. Revenue ranking and profitability ranking are completely different lists.
Pricing & Profitability Analysis allocates all costs — direct and indirect — to individual products, customers, and channels to calculate true contribution margin at every level. This reveals the segments that generate profit, the segments that destroy profit, and the pricing or cost changes needed to fix the unprofitable ones.
What you get: - Product-level profitability with fully loaded cost allocation - Customer-level profitability with service cost attribution - Channel-level profitability with acquisition and fulfillment costs - Contribution margin waterfall (revenue to net margin) - Profitability distribution (Pareto analysis) - Pricing adjustment recommendations per segment
Built for: finance and leadership teams who allocate resources based on revenue rankings — where profitability analysis would redirect investment from high-revenue low-margin segments to moderate-revenue high-margin segments.