Product margin
Contribution after direct costs.
All virtual cfo services
Virtual CFO
Pricing and Margin Decisions
FinAura works out what each product, customer and channel really contributes once direct costs, discounts, returns and servicing are counted. With that view, price increases, discount policies and which customers to grow are decided on margin, and the effect on profit is modelled before you change anything.
- Chartered Accountant-led
- Bangalore and across India
- Reply within one business day
What is covered
What Pricing and Margin Decisions Covers
Where margin is made, and where it leaks.
Customer margin
After discounts, returns and service.
Channel margin
Direct, distributor, marketplace.
Discount review
What each scheme actually costs.
Price change model
Effect on volume and profit.
Policy
Who can discount, by how much.
How the month runs
How It Works
Measure, find, model, decide.
Step 1
Measure
- Sales data
- Direct costs
- Discounts and returns
Step 2
Find
- Margin by product
- By customer
- By channel
Step 3
Model
- Price changes
- Discount limits
- Mix shifts
Step 4
Decide
- Changes agreed
- Policy written
- Tracked monthly
Your part
What We Need From You
- 01Sales data by product and customer
- 02Cost data or bills of materials
- 03Discount and scheme records
- 04Your pricing history
Our part
What You Get
- Margin by product, customer and channel
- The cost of each discount scheme
- Modelled options for price changes
- A discount policy with limits
A common question
Why does revenue grow while profit does not?
Often because growth is coming from the lowest-margin products, customers or channels, and discounts have crept up without anyone adding up their cost.
Seeing contribution by line shows which growth is worth having and where a small price change does more than a lot of extra volume.
See cost and product profitabilityDecisionPriced on numbers
MarginBy product, customer, channel
DataSales, costs, discounts
Who it is for
Who It Is For
Manufacturers
Many SKUs, rising input costs.
Distributors and D2C brands
Channel and scheme costs.
Service firms
Project and client margins.
Businesses facing price pressure
Deciding where to hold firm.
The rules, in plain English
What the Law Asks of Your Books
Companies Act, 2013
Section 128
Every company keeps books of account that give a true and fair view of its affairs, at its registered office or another place the Board decides, and preserves them for at least the eight financial years before the current one.
Official source: mca.gov.inCompanies (Accounts) Rules, 2014
Rule 3
Books kept electronically must stay accessible in India at all times, with a daily back-up on servers physically in India. For financial years starting on or after 1 April 2023, the accounting software must keep an audit trail of every change that cannot be switched off.
Official source: mca.gov.inCGST Act, 2017
Sections 35 and 36
Every GST-registered business keeps its accounts and records at its principal place of business and retains them for 72 months from the due date of the annual return for that year, or longer while an appeal or proceeding is open.
Official source: cbic-gst.gov.inIncome-tax law
Books and tax audit
Businesses and professions above the prescribed limits must keep books of account, and a tax audit follows above further limits. The limits change from time to time, so we confirm which apply to you before the year starts.
Official source: incometax.gov.inThis is general information, not advice for your situation; we confirm what applies to you before any work starts.
Questions we get asked
Pricing and Margin Decisions: Questions, Answered
What is contribution margin?
Revenue minus the costs that vary with it, such as materials, freight and commissions. It shows what each sale contributes to fixed costs and profit.
Do you set our prices?
We model the options and their effect on profit; the pricing decision stays with you.
Can this be done from Tally or Zoho data?
Yes, if sales are recorded by item and customer. Where costs are not, we build a reasonable allocation and document it.
Is this a one-time exercise?
The first analysis is a project; margin by line can then be added to your monthly MIS.
Often Taken Together
All 10 Virtual CFO services01Virtual CFOFinance StrategyPricing, margins, cost structure and growth plans turned into numbers you can act on.02Virtual CFOMonthly CFO ReviewA fixed monthly session with your Chartered Accountant on cash, margins, tax and the decisions ahead.03Accounting & FinanceManagement Reporting & BudgetingMonthly MIS, budgets, forecasts and dashboards built from reconciled books.04Accounting & FinanceAccounting & BookkeepingClean, current books every month, reviewed by a Chartered Accountant.