Multi-Product Mix Optimizer
Optimize your portfolio profitability. Balance 'Loss Leaders' with 'Profit Drivers' to achieve your target blended margin.
SKU List
Profit Contribution by SKU
Portfolio Health
Blended Margin: 35.0%
Revenue vs Profit
Check the charts. Does your highest revenue product also generate the most profit? If not, you are 'busy' but not 'profitable'.
Margin Drag
Identify SKUs with margins significantly below the blended average. Can you raise prices or cut costs on these?
The 80/20 Rule
Likely, 20% of your products generate 80% of your profit. Protect these at all costs.
Execution Steps
Add your products to the list.
Enter Cost, Price, and Monthly Volume for each SKU.
The tool calculates the 'Blended Margin' for the entire portfolio.
Use the visualizer to identify which products contribute the most to actual profit dollars vs. revenue.
Pro Strategy
- Don't kill a low-margin product if it drives volume for a high-margin accessory (Razor & Blades model).
- Monitor the 'Profit Mix'. If 80% of your profit comes from one SKU, you have a concentration risk.
- Use high-volume, low-margin items to cover fixed overhead, and low-volume, high-margin items to generate net profit.
Core Concepts
Portfolio Pricing
Setting prices for a group of products to maximize total profit, rather than optimizing each product individually.
Loss Leader
A product sold at a loss (or zero margin) to attract customers who will then buy higher-margin items.
Blended Margin
The weighted average margin of all products sold. This is the metric that matters for business health.
What is Multi-Product Mix Optimizer?
This tool performs a weighted average analysis of your product portfolio. It calculates the contribution of each SKU to total revenue and total profit, visualizing the 'Profit Mix' vs the 'Revenue Mix'.
Best For
- • Quarterly portfolio reviews.
- • Deciding which SKUs to discontinue.
- • Planning a bundle strategy.
Limitations
- • Does not account for fixed costs (overhead).
- • Assumes volume is independent (no cross-elasticity).
- • Simplified cost structure.
Alternative Methods
Unit Economics Calc
Deep dive into a single product's profitability.
Bundle Profit Tool
Optimizing the pricing of items sold specifically together.
Industry Applications
See how this methodology generates real revenue uplift in different sectors.
Electronics Retailer
Sold TVs at 5% margin to compete with Amazon. Struggling to survive.
Used Mix Optimizer to model attaching HDMI cables (90% margin) and mounts.
SaaS Platform
High server costs for 'Heavy Users' on the unlimited plan.
Introduced a usage cap. Heavy users moved to Enterprise (High Price), light users stayed on Basic.