Afrexai Profit Margin

# Profit Margin Analyzer

Analyze and optimize profit margins across your business. Identifies margin compression, pricing opportunities, and cost levers.

## What This Does
- Calculates gross, operating, and net margins by product/service line
- Benchmarks against industry standards (2026 data)
- Identifies margin erosion patterns and root causes
- Generates pricing adjustment recommendations
- Models impact of cost changes on profitability

## How to Use

Tell your agent:
- "Analyze our profit margins" — gets full breakdown with benchmarks
- "Where are we losing margin?" — identifies compression points
- "Model a 5% price increase" — shows bottom-line impact

## Margin Framework

### Gross Margin Benchmarks (2026)
| Industry | Healthy | Warning | Critical |
|----------|---------|---------|----------|
| SaaS | >70% | 55-70% | <55% |
| Professional Services | >35% | 25-35% | <25% |
| Manufacturing | >25% | 15-25% | <15% |
| Ecommerce | >40% | 25-40% | <25% |
| Construction | >20% | 12-20% | <12% |
| Healthcare Services | >45% | 30-45% | <30% |
| Legal Services | >40% | 30-40% | <30% |
| Real Estate (Brokerage) | >30% | 20-30% | <20% |
| Recruitment/Staffing | >25% | 15-25% | <15% |
| Financial Services | >50% | 35-50% | <35% |

### The 1% Pricing Rule
A 1% price increase on a 10% net margin business = **12.5% profit increase**.
This is the single highest-leverage move most businesses ignore.

### Margin Erosion Checklist
1. **Scope creep** — delivering more than contracted (services firms lose 8-15% here)
2. **Discount culture** — average B2B discount is 22%, top performers keep it under 12%
3. **Underpriced legacy contracts** — review any deal older than 18 months
4. **Hidden delivery costs** — support, onboarding, custom work not in COGS
5. **Volume without leverage** — more revenue at same margins ≠ more profit if fixed costs grew
6. **Currency exposure** — international revenue without hedging
7. **Vendor cost inflation** — AWS/Azure/GCP bills creep 15-20% annua...

# Profit Margin Analyzer

Analyze, benchmark, and optimize profit margins across your business. Built for founders, CFOs, and ops leaders who want to stop guessing and start measuring.

## What You Get
- Gross, operating, and net margin calculations by product/service line
- 2026 industry benchmarks across 10 sectors
- Margin erosion checklist (the 7 silent killers)
- The 1% pricing rule — why small price moves create outsized profit impact
- Pricing power assessment framework
- 90-day margin optimization roadmap
- Contribution margin templates to identify what to kill vs scale

## Why This Matters
Most businesses track revenue. Few track margin by product line. The ones that do consistently outperform — because they know which dollars are worth chasing and which ones cost more than they earn.

## Install
```
clawhub install afrexai-profit-margin
```

## Part of the AfrexAI Business Intelligence Suite
- [AI Revenue Leak Calculator](https://afrexai-cto.github.io/ai-revenue-calculator/) — Find where your business is bleeding money
- [Industry Context Packs](https://afrexai-cto.github.io/context-packs/) ($47/pack) — Deep frameworks for SaaS, Healthcare, Legal, Construction, Fintech, and more
- [Agent Setup Wizard](https://afrexai-cto.github.io/agent-setup/) — Configure AI agents for your business in minutes