Find out where your business makes money and where profit is being lost.
What this service entails
This is a focused profitability review. It is not a general reporting service or a broad finance transformation project.
Key Activities Under This Service
Margin analysis
- Review gross margin, contribution margin, and net margin trends
- Identify areas where margins are weakening
- Assess direct cost movements and cost-to-serve pressure
- Highlight margin risks that require management attention
Service, product, or project profitability
- Assess profitability by revenue stream where data is available
- Compare revenue against direct costs and delivery effort
- Identify high-margin and low-margin areas
- Support decisions on focus, pricing, and operational change
Customer profitability review
- Review customer-level revenue and margin contribution
- Assess discounts, servicing effort, and payment behaviour
- Identify customers that may be high revenue but low return
- Support decisions on pricing, service levels, or account focus
Pricing and discount review
- Assess whether pricing supports target margins
- Review discount patterns and price leakage
- Estimate impact of pricing changes on margin
- Provide practical pricing improvement recommendations
Cost structure review
- Review fixed costs, variable costs, payroll, suppliers, and overheads
- Identify cost increases affecting profitability
- Separate structural cost issues from one-off movements
- Recommend cost and margin improvement actions
Benefits for the Client
- Understand which customers, services, products, or projects are actually profitable.
- Identify margin pressure before it becomes a larger financial problem.
- Improve pricing decisions with better cost and margin visibility.
- Reduce profit leakage from discounting, rework, high servicing effort, or unmanaged costs.
- Focus resources on the work that creates the strongest financial return.
- Support sustainable growth by improving the quality of profit, not just revenue.
Common Problems We Help Solve
- Revenue is growing, but profit is not improving.CRUX identifies whether margins, cost structure, pricing, or revenue mix are causing the gap.
- We do not know which services or customers are profitable.CRUX reviews profitability by segment where the data supports it.
- Costs have increased, but pricing has not changed.CRUX assesses margin impact and pricing improvement options.
- Some projects look profitable, but the numbers do not reflect it.CRUX reviews direct costs, delivery effort, rework, and margin contribution.
- We suspect profit is leaking somewhere.CRUX identifies likely sources of leakage and prioritizes improvement actions.
Who This Service Is For
- Businesses with rising revenue but weak or flat profit
- Companies experiencing margin pressure
- Service-based or project-based businesses with unclear profitability
- Owners considering price increases
- Businesses with multiple revenue streams or customer groups
- Leadership teams that need better visibility into profit drivers
Deliverables
Profitability Analysis Report
A clear report showing where profit is generated and where pressure exists.
Margin Analysis
A review of gross, contribution, and net margin trends.
Segment Profitability Review
Customer, service, product, project, or department profitability where data allows.
Cost Structure Review
A focused review of costs affecting margin and profitability.
Pricing and Margin Recommendations
Practical recommendations to improve pricing, margin, and revenue quality.
Margin Improvement Roadmap
A prioritized action plan to improve profitability.
Find out where your business makes money and where profit is being lost.
Book a consultation with CRUX