Profit per product

Financial ratiosMaximizeMoney

Definition

A strategic KPI that focuses a business on providing the same product or service to more customers while reducing the cost per sale and cost per supply of that product. This KPI encourages businesses to find leverage in the sale and supply of their products and services, while reducing customisation. It can be improved by selling a product to more customers, and by streamlining processes towards a bulk delivery model.

Formula

[profit] divided by [number of products]

Tags

customer, profit, Cost