Product Profit Margin
Which Products are in the black?
This metric shows for a given product how large a share of the revenues, after deducting operating costs, is left as profit. Products with higher margins are more profitable since they either produce more revenues or require fewer resources (produce lower costs) given the same revenue level. Lower margin implies that the product either consumes more resources (higher costs) or generates lower revenues.
Which products are the most profitable, and what is their profitability trajectory? Cutting costs early on poorly performing products or increasing strategic focus on promising products is key to sustained profitability.