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The thumbnail version:

  • Holding onto unprofitable products can hurt your business
  • Analyzing the financial impact of individual products is a good business practice

The full version:

Some products could be costing you money and you may not even be aware of it. Products are like so many other aspects of a business—unless you make the effort to specifically examine them from time to time, they can meander on while hiding the fact that they are costly or unprofitable.

So when it comes to specific products or lines, they need to be examined and if determined to be unprofitable, you have to ask a few questions. For example:

  • Can you raise prices?
  • Do you have to keep this underperforming product as a strategic imperative?
  • Can you find a better, less-costly way to to produce the product?
  • Can you, and do you have to eliminate the product entirely?

When last have you looked at your individual product offering s in this way?