Pricing & profitability
Profitability Model
A model of unit economics and profitability across market, channel and SKU – showing what drives profit and what happens under different scenarios.
Service · Pricing & profitability
Profitability Optimization
Improving unit economics and contribution margin – by making every cost between the factory gate and the customer visible, and deciding which levers to pull.
The decision
Revenue growth can hide a margin problem for a long time. Marketplace fees, fulfilment, returns, advertising and promotions add up differently per product and channel, and the true contribution is often only visible once someone rebuilds the numbers from the bottom up.
We build that view and use it to decide: where to adjust prices, which fees and costs can be reduced, which products or channels need a different model and where growth should be slowed until the economics are right.
Who it is for
CFOs, commercial directors and owners who see revenue growing faster than profit, or who need to know which parts of the business actually make money before investing further.
At a glance
How we deliver
- ProjectA defined scope, timeline and deliverable.
- Recurring analysisThe same analysis updated monthly or quarterly.
Typical KPIs
- Contribution margin
- Gross margin
- TACoS
Typically relevant for
- CFO
- CCO / Commercial Director
- CEO
- Finance Manager
Decisions this helps you make
- Improve marginPricing & profitability
- Assess unit economicsPricing & profitability
- Set pricesPricing & profitability
What the work covers
- Contribution margin per product, channel and market
- Analysis of fees, fulfilment, returns and advertising cost
- Price architecture and price levels across channels
- Scenarios for margin improvement with estimated impact
- A short list of actions ranked by impact and effort
What we clarify in a first conversation
- Where do you suspect margin is being lost?
- Can you see contribution per product today, including advertising?
- How are prices set across channels and markets?
- Which decisions are waiting for a clearer profitability picture?
Methods we use
Knowledge and analysis
KnowledgeProfitability
Contribution margin on Amazon: what to include and why it changes decisions
Gross margin says little about profitability on marketplaces. Contribution margin – after fees, fulfilment, returns and advertising – is the number that should steer price, assortment…
Explore related themes
DecisionProfitability & GrowthGrowth only helps if it pays. Start with the true contribution of each product, channel and market.Executive topicDecision IntelligenceBetter commercial decisions start with a clear question, the right evidence and a way to follow up.ThemeAmazon and marketplacesAmazon is a major channel. The decisions about it belong in the commercial strategy.
Is this the decision in front of you?
Tell us where you are today. In a first conversation we clarify the decision, the data available and what a sensible scope would look like.