Afrexai Margin Analysis

# Margin Analysis & Profit Optimization

Analyze gross, operating, and net margins by product line, customer segment, and channel. Identify margin erosion patterns and build pricing power.

## When to Use
- Quarterly margin reviews
- Pricing decisions (new product, discount approval, bundle strategy)
- Cost structure changes (new vendor, headcount, infrastructure)
- Board prep or investor reporting
- Post-acquisition integration (blended margin modeling)

## Framework

### Step 1: Margin Stack (Top → Bottom)
Break revenue into layers. For each product/service line:

| Layer | Formula | Healthy Range |
|-------|---------|--------------|
| Gross Margin | (Revenue - COGS) / Revenue | 60-80% (SaaS), 30-50% (services), 20-40% (manufacturing) |
| Contribution Margin | (Revenue - Variable Costs) / Revenue | 40-70% |
| Operating Margin | EBIT / Revenue | 15-30% (mature), -20-10% (growth) |
| Net Margin | Net Income / Revenue | 10-25% (healthy), varies by stage |

### Step 2: Margin by Segment
Split margins across:
- **Product lines** — which products subsidize others?
- **Customer tiers** — enterprise vs mid-market vs SMB
- **Channels** — direct sales vs partner vs self-serve
- **Geography** — domestic vs international (FX, compliance costs)

### Step 3: Erosion Detection
Flag these patterns:
- Gross margin declining >2% QoQ without volume increase
- Discount frequency increasing (>30% of deals discounted)
- Customer acquisition cost (CAC) growing faster than LTV
- Support costs per customer rising (hidden COGS)
- Infrastructure costs scaling faster than revenue

### Step 4: Pricing Power Assessment
Score 1-5 on each:
1. **Switching costs** — how hard is it to leave?
2. **Differentiation** — can customers get this elsewhere?
3. **Value quantification** — can you prove $ ROI?
4. **Market position** — leader, challenger, or commodity?
5. **Contract structure** — annual, multi-year, usage-based?

Total 20+ = strong pricing power. Below 12 = commodity risk.

### Step 5: Optimiz...

# Margin Analysis & Profit Optimization

Full-stack margin analysis framework for B2B companies. Covers gross, operating, and net margins by product line, customer segment, and channel.

## What's Inside
- 6-step margin analysis framework (stack → segment → erosion → pricing power → optimization → scenarios)
- 2026 benchmarks across 10 industries
- Pricing power scoring system (1-25 scale)
- Erosion detection patterns and red flags
- Scenario modeling templates (base/bull/bear)
- Board-ready output template

## Use Cases
- Quarterly business reviews
- Pricing decisions and discount approvals
- Cost restructuring
- Investor/board reporting
- Post-acquisition margin integration

## Get Started
Install this skill in your OpenClaw agent, then ask it to run a margin analysis on your business data.

## More Resources
- [AI Revenue Leak Calculator](https://afrexai-cto.github.io/ai-revenue-calculator/) — free tool to find margin leaks
- [Industry Context Packs](https://afrexai-cto.github.io/context-packs/) — $47 each, vertical-specific benchmarks
- [Full Bundle](https://afrexai-cto.github.io/context-packs/) — All 10 packs for $197