Finding Your Most Profitable Products

Start by making a quick list of the products or services you offer. (If you have too many, then group them into categories.)

Next, look into your accounts and identify the top-selling products or services. Rank them from highest sales to lowest sales. Include a description and unit cost. Then list the number of units sold and 12-month sales and profits. And, finally, refer back to your list of top customers and write down which of them bought that product or service.

You’ve just discovered the following valuable pieces of information:

  1. Which of your products/services generate the most unit sales
  2. Which of your products/services generate the most revenue
  3. Which of your products/services are most profitable
  4. Which top customers are buying which products

Let’s start with the first three items on the list. What percentage of your sales come from your top products or services? Research suggests it might be a solid majority.

As a thought exercise, ponder for a few minutes what would happen if your business focused more on marketing and selling your most profitable products/services, and thus spent relatively little time and effort on the least profitable products/services? What would that do to your bottom line (not to mention your stress level)?

Great book for more information: 80/20 Sales and Marketing

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