Business Profitability: Where Are You Losing Money?
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Are you sure your most popular services are actually profitable? Your revenue might be growing, but if your profits aren’t increasing, it’s time to investigate!
The Sales analytics section in DIKIDI can help you find the truth and fix the issue.
What is Sales Profitability?
Sales profitability is the percentage of profit you earn from a revenue. Simply put, if your profitability is 30%, you make 30 cents of net profit for every dollar earned.
Profitability shows how efficiently your business operates and reveals hidden growth opportunities. But where is your profit "disappearing"?
How to Analyze Sales?
1️⃣ Overview – The Big Picture
Profitability – percentage of revenue converted into profit.
- Profit – what's left after all expenses.
- Revenue – total earnings.
- Cost Price – expenses on salaries, supplies, etc.
- Profitability – percentage of revenue converted into profit.
✅ Example: If revenue increases but profitability drops, it means expenses are growing faster than income. Time to act!
2️⃣ Services & Products Report – identify which services and products generate the most profit and which operate at a loss.
✅ Example: Massage brings 70% of the profit, while manicures generate only 10%, despite having many customers. Why? Perhaps manicures require too many supplies? DIKIDI highlights this instantly.
3️⃣ Employee Report – see who generates the most profit and who may be costing you money.
✅ Example: Marina contributes 50% of profits, while Alex only 10%. Why? Maybe Alex works with low-margin services, or he needs sales training? Now you know where to investigate.
How to Improve Profitability?
🔹 Cut Costs – Identify major expenses. Can you switch suppliers or optimize processes?
🔹 Increase Average Check – Offer additional services that clients frequently buy together
🔹 Focus on Profitable Services – Remove low-margin services and highlight the most profitable ones
🔹 Motivate Employees – Use employee analytics to reward top performers and support those struggling
Why Is It Important?
🔸 Identify & quickly fix money leaks
🔸 Make data-driven decisions instead of guessing
Remember, there is no universal profitability benchmark — it varies by industry. The key is to track your metrics over time and understand why they change.
Take control of your profits today – enable any fee DIKIDI plan & access full Sales Analytics! 🔥📚 Read also: