Product profitability analyser

What the product profitability analyser does

Not every product that sells well earns well. List each product with the units sold, the selling price and the unit cost, and the workbook works out revenue, cost of sales, gross profit, margin, each product's share of total profit and its rank, so you know where to push and what to reprice or drop.

Who it is for

Shop owners, manufacturers and service businesses reviewing their range, and consultants helping a business find where its profit comes from.

How to use the workbook

1. List each product or service in the first column.
2. Type the units sold in the period, the selling price and the unit cost.
3. Read the gross profit, the margin and the rank of each product.
4. Use the summary chart to see which products contribute most to profit.
5. Save a copy under a new name for each month or year, so earlier records stay as they were.

What is inside

• Revenue, cost of sales and gross profit for each product
• Margin percentage
• Share of total profit
• Rank from most to least profitable
• Chart of profit by product

The workbook has these sheets: Instructions, Products, Profit by product. The main table has the columns Product or service; Units sold; Selling price; Unit cost; Revenue; Cost of sales; Gross profit; Margin. Yellow cells are for you to fill in and grey cells calculate by themselves, so leave the grey cells alone. The example rows show how it works; type over them with your own entries.

Tips for getting it right

• Use the full unit cost, including packaging and delivery, not just the purchase price.
• A high-volume product with a thin margin may earn less than a slow one with a fat margin.
• Review prices of low-margin products before you cut their stock.
• Run the analysis every quarter and compare the results.

Why keep this record

Running a business on memory works until it grows. Writing the numbers down turns opinions into facts you can compare month to month, and shows early which products, customers or costs deserve attention. Even a simple workbook, used every week, usually beats a sophisticated one that is opened once a year.

Questions people ask

Do I need to know Excel formulas? No. Type into the yellow cells and the rest is worked out for you. The formulas are visible if you want to see how a figure is reached.

Can I add rows or change the layout? You can add your own columns to the right and your own notes. If you insert rows inside a table, copy the grey formula cells down so the new rows calculate too.

Will it work on my phone or in Google Sheets? Yes for viewing and typing, but dropdown lists and the charts look best in desktop Excel or LibreOffice.

Keeping it safe and up to date

A plan is only as good as the numbers you put in. Start with honest estimates, update the workbook as real figures arrive, and compare the two so your next estimate is better. Save a dated copy each month so you can see how your thinking changed.

Read how to build a cash flow forecast for the wider picture. Free calculators that go with it: Vat calculator. See more business templates or ask us for a custom one.

The workbook works in Microsoft Excel, LibreOffice and Google Sheets. It is a tool to help you work out and record figures, not tax, legal or accounting advice, and it is not affiliated with the Kenya Revenue Authority. If something does not work as described, contact us and we will put it right.

Related guides, calculators and templates

• Free calculator: VAT Calculator
• Guide: VAT invoices and quotations in Kenya: what to include and common mistakes
• Guide: Buying off-plan property in Kenya: the risks and the checks to run
• Guide: Import VAT in Kenya: how to claim it back on your VAT return
• Another template: Pricing and markup calculator
• Another template: Product price list with VAT
• Another template: Reorder level and safety stock calculator

Need something different? Request a custom template, browse all guides or see every Excel template.