Capability 02
Business Performance
Margin by product, customer and branch, and the first things to change.
What this work is
Profitable businesses are rarely profitable everywhere. Some products carry the rest. Some customers cost more to serve than they pay. Some branches have looked fine for years because their losses are buried in a company-wide total. Management usually senses this without being able to prove it.
Business performance work makes those differences visible. We build costing that reflects how the business actually operates, split profitability by product, customer, branch or segment, and identify where margin is being made and where it is quietly being given away.
The point is not the analysis. The point is the decision that follows it, repricing, renegotiating, restructuring a process, or discontinuing something that never earned its place.
You probably need this if
- Overall margin is falling and no one can say which part of the business caused it.
- You price by adding a percentage to cost, and the cost figure is a guess.
- Some customers demand heavy service and you have never measured what they cost.
- A product line has been kept for years on the assumption that it contributes.
- Two locations with similar revenue produce very different results and nobody knows why.
How an engagement runs
- 01
Get the data
Ledgers, sales and cost records pulled together and reconciled to source.
- 02
Find the leaks
Margin by product, customer and channel, to show what actually earns money.
- 03
Explain the gap
Trace why profit, cash and the reports do not tell the same story.
- 04
Fix and reprice
Costing, pricing and cost-control changes, prioritised by impact.
- 05
Track the result
A monthly view that shows whether the changes are working.
What this covers
Profitability analysis
Product costing
Customer profitability
Branch profitability
Pricing analysis
Cost optimisation
KPI development
Management dashboards
MIS design
Budget versus actual analysis
What you get
- 01
Costing model
Direct and indirect costs allocated on a basis that reflects real activity, not an arbitrary percentage.
- 02
Profitability segmentation
Contribution and net margin by product, customer, channel, branch or segment, ranked.
- 03
Margin bridge
A quantified explanation of why margin moved between two periods, volume, price, mix, cost.
- 04
Action list
Specific, costed interventions with expected impact and the order to do them in.
Common questions
What data do you need to start?
Sales by line item, a cost breakdown and payroll. Anything else we identify as we go. If a data set does not exist, we say what it would take to build it.
Will this disrupt our team?
We need a few hours from the people who know how the operation runs. Beyond that the work is done on our side.
What if the analysis shows something uncomfortable?
It usually does. We report what the numbers show, including when the answer is that a favoured product or a long-standing customer is losing money.
Written on this, by us
- Finance and growthManufacturing in Nepal: Costing, Margin and Inventory Control
- Finance and growthImport and Distribution in Nepal: Landed Cost, LC Margins and Working Capital
- Tax in NepalTransfer Pricing, Explained Plainly: What It Is, Where It Goes Wrong, and What Nepal Expects
- Finance and growthCosting Every Product Before You Raise: A Food Business Guide for Nepal
Improve Business Performance
Book a free callOther capabilities
Financial Strategy
Funding rounds, capital structure, and the models that have to hold up underneath them.
Finance Function & CFO Advisory
Monthly numbers that close on time, without anyone chasing them.
Tax & Technical Advisory
Tax positions that survive an IRD query, documented before the query comes.
NFRS & Financial Reporting
Statements your auditor signs, your bank reads, and your investors believe.
Outsourcing & Virtual CFO
Monthly accounting, reporting and CFO-level support run for you, for businesses in Nepal and firms abroad outsourcing here.