$65M in revenue. We were paying to work.

$65M in revenue. We were paying to work.

5 Years ago, I analyzed the 80% of the revenues in a medium-sized company.

8 major East Coast grocery chains.

90,000 sq. ft. | 45 employees | high-speed lines.

$65M in annual revenue with top grocery chains. A lot of work orders.

The goal was revenue Vs contribution margin, and of course, profit.

Sales were concentrated in a few items.

The analysis was brutal
• Focaccia: –$0.15 per unit
• Panini: 5% margin (one breakdown from red)
• Baguettes: barely covering overhead

They weren’t scaling a business. They were scaling a loss.

Revenue is Vanity. Margin tells the truth.

$65M means nothing if the contribution margin is broken.

The hardest leadership decision is not signing the next big account; it's having the discipline to control and audit the ones you already have.

When was the last time you reviewed the "winners" in your portfolio?

#profitability #manufacturing #operations