Hero Summary

Blended margins hid unprofitable SKUs. Our SKU audit lifted profits by $700K.

Attaching true costs to SKUs exposed loss-makers and focused ops on winners.

The Blind Spot

Only tracked blended margins. 11% of SKUs were loss-making once freight and fulfillment were included.

The Fix

• Performed ABC/TD-ABC costing audit

• Built SKU-level P&Ls

• Coached rationalization of product mix

The ROI

• Eliminated 11% of SKUs destroying value

• $700K in margin recovered

• Purchasing and production aligned to top-performing SKUs

Takeaway

SKU clarity = higher profits.

Client Quote

“Growth CFO showed us exactly which products were stealing profit. Cutting them was the easiest $700K decision we’ve made.”

• Margin: +$700K