IDEA: Unless tied to other profitable products, eliminate losing products (raise prices).

Calculate the profit margin on all of your products regularly (weekly, monthly), line them up from highest to lowest and analyze what can be done to raise the profit margins on the bottom 10% or 20% (you pick the size of the group).  There will be some that you must keep because they are tied in with other very profitable items (loss leaders).  There are others that are possibly bought by some of your very large or more important clients.  These exceptions are fine; keep their pricing the same if you must.  Analyze how you can cut the costs of making or selling this product. Can you lower its price through volume or through other pricing with your suppliers.  Otherwise, raise  your prices on all of the rest of these product ‘dogs’ without question.  Customers will either pay the increase or not buy them thus decreasing your loss. You win either way.  Just have the guts to do it.

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