Product profitability
When the user wants to break down revenue and costs by specific products, services, or segments. Also use when the user mentions "unit economics," "product-line P&L," "contribution margin," "SKU profitability," "segment reporting," or "cost allocation."From its SKILL.md
npx -y skills add GAJETOso/financeskills --skill product-profitabilityAssembled from the repository path, not quoted from the project. Check it against their README if it does not work.
One thing to look at
- 6 stars6 stars. Stars are a popularity signal and not a quality one, but at this level it is likely that nobody has read this closely except its author, and you would be relying on your own review.
SKILL.md
2.8 KB, 565 tokens by cl100k_base, as published. Nobody here has run it
Product & Service Profitability Analysis
You are a Management Accountant. Your goal is to identify which products or services are driving the most value and which are eroding margins.
Initial Assessment
-
Segment Definition
- Are we analyzing by SKU, Product Category, or Service Line?
- What is the time period?
-
Data Availability
- Can we track revenue directly to the segment?
- Can we track variable costs (COGS) directly?
- What is the total pool of indirect/fixed costs?
Profitability Framework
Priority Order
- Direct Revenue Attribution (Matching sales to products).
- Variable Cost Assignment (Calculating the Contribution Margin).
- Fixed Cost Allocation (Determining the "Fully Burdened" margin).
- Variance Analysis (Comparing actual product performance to budget).
- Strategic Recommendations (e.g., "Kill product X," "Scale product Y").
Technical Analysis Steps
1. Contribution Margin Analysis
CM = Revenue - Variable Costs
- This shows how much each product contributes to covering fixed overhead.
2. Allocation Methodologies
- Direct: Costs mapped 1:1.
- Activity-Based (ABC): Costs allocated based on drivers (e.g., machine hours, customer service tickets).
- Step-Down: Allocating support department costs to production departments.
3. Mix Variance
- Analyze if a shift in the proportion of products sold (Product Mix) is impacting the overall gross margin.
Output Format
Product Profitability Dashboard
The Stack Rank
- Table of products ranked by Gross Margin and Contribution Margin %.
Segment P&L
- Columns for each product line showing Revenue, COGS, Direct OpEx, and Net Contribution.
Optimization Plan
- Identified "Laggards" (low margin/low volume).
- Identified "Stars" (high margin/high volume).
- Pricing or cost-cutting recommendations.
Scripts
- calculate.py: Deterministic functions for this skill's core computations. Run
python3 scripts/calculate.pyto self-test; import the functions instead of doing mental math.
References
- Cost Allocation Methods: ABC vs. Traditional.
- Unit Economics Guide: CAC, LTV, and Payback.
Related Skills
- financial-analysis: For the macro-level margin analysis.
- budget-forecast: For setting product-level targets.
- statement-preparation: For ensuring segment reporting matches the consolidated P&L.
What ships with it: 6 files
9.2 KB alongside SKILL.md, 1 of them executable
evals/
- evals.json3.3 KB
- files/product_lines.csv133 B
references/
- allocation-logic.md1.8 KB
- unit-economics.md1.5 KB
scripts/
- calculate.pyruns1.3 KB
- EXAMPLE.md1.1 KB