A pre-sale financial audit of every SKU's contribution margin (profit after Amazon fees, COGS, and PPC spend) to separate healthy products from unhealthy legacy ones.
Twelve or more months before a sale, cut or deprioritize sub-10%-margin SKUs and redirect the freed capital toward growing the 25-30%-margin products. This improves cash flow and directly raises exit valuation, and forms part of a broader exit preparation effort.
"when your contribution margin on a given product is less than 10%, you're basically allocating capital to have inventory for those products but it's not really generating enough profit."
Из тем: Selling the Brand