Measures the profitability of a product throughout its entire lifecycle, from development to end-of-life.
What it Measures ?
Measures total profit across a product’s lifecycle.
Relevant StakeHolders
Product Manager, Finance Controller
Why it Matters ?
Improves product profitability through lifecycle visibility.
In-depth Use Case / Real-world Example
A company manufacturing smartphones calculates Product Lifecycle Profitability by analyzing the costs associated with product development, production, marketing, and post-sale service against the revenue generated throughout the product’s lifecycle. If the smartphone generates ₹100 crore in revenue over its lifecycle with ₹80 crore in costs, the product is considered highly profitable.
Sample Formula
Revenue - Total Product Lifecycle Costs