Indicates the profit earned on each unit sold, expressed as a percentage of the selling price.

What it Measures ?

How much we earn from each product.

Relevant StakeHolders 

Product Managers, Finance Team

In-depth Use Case / Real-world Example

In manufacturing, Profit Margin per Product helps identify which items are most financially beneficial. Suppose a manufacturer produces a hydraulic pump that costs ₹30,000 to manufacture and sells for ₹50,000. The profit is ₹20,000, and the margin is (20,000 ÷ 50,000) × 100 = 40%. This KPI allows businesses to focus on high-margin products, reevaluate pricing strategies, or redesign cost-heavy components. If another product has a 10% margin but requires complex production, it may not be worth the effort. Tracking this helps prioritize R&D, sales focus, and marketing campaigns toward higher-margin lines.