Guide
Spot which products or services are actually making money
Look past total revenue to find out what's genuinely profitable, and what's quietly costing you.
Break down revenue by product, service, or client
Instead of one total number, split income into its actual sources so you can compare them against each other.
Attribute real costs to each one
Include not just materials but the time spent, support given, and any specific costs tied to that product or client.
Calculate profitability for each line
Once revenue and costs are separated, you'll often find a surprising amount of effort going toward your least profitable work.
Decide what to do with the answer
That might mean raising prices on a low-margin service, dropping it, or simply spending less time on it relative to what's actually paying the bills.
That’s the whole thing.
Keep going
What to read next
- 01
Pricing & Profitability
Price your product or service properly
Set a price that reflects your costs and value, not just a guess at what feels fair.
- 02
Pricing & Profitability
Know your numbers: margin, markup, and breakeven
Learn the three numbers that tell you whether the business is actually working.
- 03
Pricing & Profitability
Raise your prices without losing customers
Increase prices confidently, with a process that keeps most customers on board.