Business Advisory
Profitability & Margin Analysis
Revenue is vanity, profit is sanity. PHC & Associates conducts a deep-dive profitability and margin analysis of your business — identifying where you make money, where you lose it, and exactly which levers to pull to improve your bottom line.
1000+
Clients Advised
CPA
Certified
Margin
Analysis & Benchmarking
What's Included
Everything Covered in This Service
Gross margin analysis by product, service, job, or client
Net profit analysis with cost allocation across business units
Overhead review — identification of controllable cost reductions
Pricing analysis — are you priced correctly for your cost base?
Customer and revenue concentration risk assessment
Labour productivity and cost-per-output analysis
Benchmarking against industry averages and competitors
Prioritised recommendations with quantified financial impact
Why It Matters
Why This Matters for Your Business
Understanding the value of this service helps you get the most from it.
Most Businesses Don't Know Their Real Margins
Knowing your overall profit margin is not enough. A line-by-line margin analysis often reveals that some products or clients are highly profitable while others are actually loss-making.
Small Pricing Changes Have Large Profit Impact
A 5% price increase on a 20% margin business increases profit by 25%. Pricing analysis is often the highest-return advisory engagement a business can undertake.
Overheads Creep Silently
As businesses grow, overhead costs accumulate without being regularly reviewed. A structured overhead analysis typically identifies 5–15% in controllable cost savings.
Client Concentration is a Business Risk
If 80% of your revenue comes from 20% of your clients, your business is more fragile than it appears. Margin analysis reveals concentration risk and informs diversification strategy.
Data Beats Instinct
Business owners often believe they know which products or clients are most profitable. Analysis consistently reveals surprises — and those surprises are where the opportunity is.
How It Works
Your Step-by-Step Process
A clear, structured process so you know what to expect from start to finish.
Data Collection
We gather P&L data, cost allocations, and revenue by segment.
Margin Modelling
Gross and net margins are calculated at product, service, and client level.
Overhead Review
Overhead costs are categorised, allocated, and reviewed for reduction opportunities.
Benchmarking
Results are compared against industry benchmarks and prior periods.
Recommendations
A prioritised list of recommendations is prepared with quantified impact estimates.
Implementation Support
We assist you in implementing pricing, cost, and structural changes.