Not all products make money equally. In most product businesses, 20% of SKUs generate 80% of profit — while a tail of underperforming lines consume resource and dilute margin. This tool ranks every product by contribution and tells you exactly where your profit comes from.
Real inputs. Real outputs. See exactly what you get before you commit to anything.
This is a live preview of the Portfolio Profit Analyser — the same tool available to all subscribers.
Subscribe to access →Every tool generates a downloadable PDF report — structured like a professional consultant's analysis, built from your actual data. Below is an example using dummy data.
Ask most product business owners which of their products are most profitable and they will give you an answer based on revenue — the lines that sell the most, generate the highest turnover, or attract the most customer attention. Revenue is visible. Margin is not. And the product that generates the most revenue is very often not the product that generates the most profit.
The relationship between price, cost, and volume — contribution margin — is what actually determines profitability at the product level. A high-volume line at thin margins may contribute less to profit than a lower-volume line at strong margins. A product that looks essential because it accounts for 30% of revenue may be generating only 5% of profit, while a smaller product that seems peripheral is quietly driving 40% of the bottom line.
Until you map contribution by product, you are making range decisions, stock allocation decisions, sales effort decisions, and marketing investment decisions without knowing which products deserve them.
ABC classification is the standard methodology for ranking products by their commercial importance. A-class products are the top 20% by contribution margin — they generate the majority of profit and deserve the majority of commercial resource. B-class products are the middle tier — acceptable performers that warrant maintenance but not priority investment. C-class products are the bottom 50% — lines that generate minimal profit while consuming disproportionate stock, operational, and management overhead.
The Portfolio Profit Analyser applies ABC classification automatically across every product you enter. The output tells you immediately which products to protect, which to maintain, and which to review for repricing or removal.
A loss-making product — one where variable costs exceed the selling price — increases total losses on every unit sold. There is no volume at which a negative contribution margin product becomes profitable. Yet many product businesses carry loss-making lines for years without realising it, because the revenue from those lines looks real even though the margin is negative.
The tool flags loss-making products immediately, quantifies the annual loss each one is generating, and calculates the impact of removing them on blended portfolio margin. This is frequently the highest-value single action available to a product business — discontinuing one loss-making line can add more to annual profit than a 5% revenue increase across the whole range.
Blended portfolio margin is the weighted average contribution margin across all products, weighted by revenue. It is the single most important commercial metric for a product business because it determines how quickly the business reaches profit as volume grows, and how much buffer exists against cost increases or price pressure.
The tool calculates blended margin in real time as you add products. It also shows the impact of removing low-margin lines — in most portfolios, removing the bottom 20% of SKUs by contribution actually improves blended margin by 2-5 percentage points, even though total revenue falls. This is the commercial logic behind range rationalisation: fewer, better products generate more profit than a large range with a long margin-diluting tail.
The Portfolio Profit Analyser is included in every LumixAI subscription. £19.99/month. 7-day free trial. Cancel any time.