===== What should I do if a product is not profitable? =====

A product becomes not profitable when its COGS and its share of the expenses are higher than its revenue. You may still want to keep the product (it is called a lost leader) because its presence could attract customers to purchase more profitable products, but as a general rule you would want to "fix" this problem in one of the following ways:

  * Increase its price. On the menu, select assumptions/revenues/pricing.
  * Decrease its COGS. You can do this by finding ways to lower the cost to you of raw materials (On the menu, select assumptions/costs/raw materials) or by using fewer raw materials in each product (On the menu, select assumptions/costs/cost of goods sold).
  * Increase its volume. On the menu, select assumptions/revenues/sales models.

{{keywords>cost of goods sold, COGS, product, breakeven, portfolio, price, profit}}

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