# Margin Analyzer

> Margin Analyzer — Margin Analyst

- Skill: `alebgl77/margin-analyzer` (Agent Skill)
- Install (CLI): `npx skillmds@latest add alebgl77/margin-analyzer`
- Raw SKILL.md: https://api.skillmd.com/api/skills/alebgl77/margin-analyzer/raw
- Safety review: pending
- Works with: Claude Code, Claude.ai, OpenAI Codex
- Category: Coding & Dev Tools
- Author: alebgl77 (https://skillmd.com/u/alebgl77)
- Updated: 2026-09-17
- Page: https://skillmd.com/skills/alebgl77/margin-analyzer

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# Margin Analyzer — Margin Analyst

> "Analyse margins."

Revenue is vanity, margin is sanity: this skill finds where the profit actually lives — and where it quietly leaks.

## When to use

- "Revenue is up 20% but the bank account isn't — where does the money go?"
- "Which products / services / clients actually make us money?"
- "Should we raise prices, and on what?"
- "A client is pushing for a discount — where's my floor?"
- Before adding a product line or killing one: run the mix first.

## Workflow

1. **Pick the unit and ingest data.** Product, service line, or client — whichever the decision is about. From pasted data or CSV: revenue per unit and direct costs (materials, direct labor hours × loaded rate, payment fees, shipping, subcontractors).
2. **Compute contribution margin with code.** Revenue − direct costs, per unit; rank by CM%. Show absolute and percentage — a 70% margin on 500 buys less than a 25% margin on 40,000.
3. **Allocate overhead and state the method.** Default driver: revenue share; switch to direct-labor hours when the business is labor-heavy. Compute net margin per unit. The allocation choice changes the answer — say which was used and why.
4. **Set price floors.** Floor = direct cost ÷ (1 − target CM%). Below the floor, work is declined or re-scoped — the floor is where discounting stops.
5. **Run the mix analysis.** Margin% against volume: PUSH (high margin — sell more of it), FIX (volume without margin — reprice, re-scope, or re-cost), KILL (low margin, low volume — sunset or replace).
6. **Model three pricing moves with code.** For example: +x% on the top-decile clients, a minimum order or engagement size, killing the worst SKU and redirecting its volume. Quantify annual margin impact and name every assumption.
7. **Pick the first move.** The one the owner can execute this month without losing a strategic client — and define "strategic" here (referrals, volume floor, flagship logo), not as a feeling.

## Output format

```
MARGIN ANALYSIS — <business> — <period> — unit: <product / service / client>

CONTRIBUTION MARGIN RANKING
Rank | Unit   | Revenue | Direct costs | CM     | CM% | Volume
1    | <name> | 38,000  | 14,400       | 23,600 | 62% | ...
...  | ...    | ...     | ...          | ...    | ... | ...

OVERHEAD: <total> allocated by <revenue share / direct-labor hours> — because <reason>
NET MARGIN
Unit | CM% | Overhead share | Net margin | Net%
...  | ... | ...            | ...        | ...

PRICE FLOORS (decline or re-scope below these)
Unit | Direct cost | Target CM% | Floor | Current price | Headroom
...  | ...         | ...        | ...   | ...           | ...

MIX
PUSH: <units> — <why, and the move that grows them>
FIX:  <units> — <reprice / re-scope / re-cost, with the number>
KILL: <units> — <sunset plan and where the freed capacity goes>

PRICING MOVES (modeled)
1. <move> → +<amount>/yr margin (<assumptions>)
2. <move> → +<amount>/yr (<assumptions>)
3. <move> → +<amount>/yr (<assumptions>)
First move: #<n> — executable this month because <reason>.
```

## Quality bar

- [ ] All margins computed with code from row-level data — no averaged averages.
- [ ] Direct labor costed at loaded rates, never bare wages.
- [ ] Overhead allocation method stated, with one sentence on why it fits this business.
- [ ] Every FIX and KILL names its number: the reprice, the re-scope, or the sunset date.
- [ ] Pricing moves quantified with explicit assumptions, not "should improve margins."
- [ ] Client rankings marked internal-only — flagged before anything ships externally.

## Example

**Invocation:** "Sales and job-cost export for H1 attached — which services are worth it?"

**Produced:** A CM ranking across five service lines: installs at 61% CM, maintenance contracts at 11% after loaded labor. Overhead allocated by labor hours (labor-heavy shop); price floors per line; mix verdict — push installs, fix maintenance with a +14% reprice at renewal, kill one-off repairs under 150. Three modeled moves worth 31,000/yr combined, with the maintenance reprice picked as the month-one move.