Five ways to fix low-margin products instead of killing them: cut supplier costs by 10%, drop returns from 12% to 8%, save $1 per order on fulfillment, add $3 to a $40 price tag, and stop paid ads. Test the worst performer over 90 days and decide at 15% contribution margin.
Chapters
Nine percent margin Product doesn't have to die. Here are five levers that can save it Most bad margin products are not hopeless. They're flexible. They're fixable. But founders don't know what levers to pull. So they either kill too early or freeze too long. Five levers Try them in order renegotiate cogs Go back to your supplier. We covered this in January payment terms MOQs volume commitments a 10% COGS reduction can swing CM by 5 points. Lever 2 reduce returns high return products destroy margin can you improve product description? Sizing guides quality A return rate drop from 12% to 8% saves real money lever 3 optimize fulfillment are you paying too much or per order? Packaging too expensive shipping method inefficient $10 saved per year $1 saved per order is $1 more centimeters 4. Just pricing the scariest lever but often the Most powerful. A $3 price increase on a $40 product is 7.5 more revenue with 0 added cost 5. Cut acquisition costs if CAC is killing CM, stop advertising that product. Sell it organically or bundle it with winners. Work this 5 give it 90 days. If CM doesn't hit 15% plus then it's a kill. Pick your worst performing fixed product Identify which lever has the most potential. Start there this week.