Costing Strategy That Shows Which Products Deserve Your Capacity

Who This Is For

• You produce many products or services but don’t clearly know which ones create or destroy profit.

• Your costing is still based on simple averages or old spreadsheets that no longer match reality.

• Sales keeps selling low-margin or complex work that ties up capacity for weak returns.

• You want costing that supports pricing and strategy decisions, not just year-end reporting.

What You Get From Our Costing Work

• A clear view of true cost per product, service, or project – not just averages.

• A simple classification of your portfolio: profit engines, low-margin, and value destroyers.

• A costing model that links to capacity, bottlenecks, and pricing decisions.

• Practical rules for which work to grow, fix, or stop so you protect margin and cash.

You don’t just receive a new spreadsheet. You leave with a costing model, decision rules, and dashboards that leadership can actually use in monthly meetings.

Our Costing Strategy Solutions

CO-01 – Product & Service True Cost Scan

Purpose

Reveal which products, services, and projects really make money after using up your people, machines, and overhead.

Typical problems we see

• “We’re busy, but profit doesn’t move.”

• “Some customers always complain about price, and we’re not sure they’re worth it.”

• “We suspect some SKUs or services are loss-making, but we can’t prove it.”

What we do

• Collect a focused data set: volumes, direct costs, key activities, and overheads.

• Design a fit-for-purpose ABC / capacity costing model (not academic, just enough to be useful).

• Allocate costs based on real drivers: machine hours, labor time, setups, complexity, site visits, etc.

• Calculate true cost and margin per product/service/customer segment.

• Classify each item: grow, fix, re-price, or exit.

Tangible outputs

• A working True Cost Model in Sheets/Excel.

• A Product / Service Profitability Map (profit engines vs value destroyers).

• A short list of pricing, mix, and exit recommendations.

• A one-page Owner Summary showing where SAR is earned and where it leaks.

CO-02 – Capacity & Mix Optimization

Purpose

Align your product and project mix with your real bottlenecks so every machine hour and crew day generates maximum contribution.

Typical problems we see

• Factories and crews are “always full” but cash and profit are weak.

• High-margin work gets delayed because capacity is taken by complex, low-paying jobs.

• No clear rules exist for which orders or projects to accept, delay, or reject.

What we do

• Identify bottlenecks: key machines, production lines, crews, or project teams.

• Calculate contribution per bottleneck unit (per machine hour, crew day, etc.).

• Rank products/services/projects by contribution per constraint.

• Simulate different mix scenarios to see impact on profit and cash.

• Define simple accept/reject/priority rules for sales and operations.

Tangible outputs

• A Capacity Contribution Model tied to your constraint resources.

• A ranked product / project priority list by contribution per bottleneck.

• Clear rules for what to sell more of, what to limit, and what to kill.

• A management-ready Capacity & Mix Dashboard for monthly review.

CO-03 – Cost Discipline & Governance System

Purpose

Make cost visibility and discipline part of your monthly management, not a one-off “cost-cutting campaign”.

Typical problems we see

• Cost initiatives start strong then fade after a few months.

• Departments argue over numbers because they don’t share a common cost view.

• Leaders see totals but not the structure behind them (drivers, fixed vs variable, by segment).

What we do

• Define cost views that matter: by product, customer group, line, project, and function.

• Build a Cost Dashboard from your ERP/accounting exports into Sheets/Excel.

• Set thresholds and alerts for major cost drivers (materials, overtime, rework, logistics, subcontractors).

• Design a monthly cost review rhythm for owners, finance, and operations.

• Agree on governance rules for approvals, investments, and cost changes.

Tangible outputs

• A working Cost Dashboard with regular data refresh.

• A Cost Governance Charter (who approves what, and on what basis).

• Templates for monthly cost review packs for management and boards.

How Our Costing Method Works

Whether you use one solution or all three, we apply a structured approach:

• Clarify the decisions you need to support
  Pricing, product mix, investments, outsourcing, or exit decisions – we start with the decisions, not the formulas.

• Map activities, drivers, and capacity
  We look at how work really flows through your factory, site, or office, then choose a costing approach that fits (ABC, capacity costing, or a hybrid).

• Build a transparent model
  We design a model that is simple enough to understand but detailed enough to support serious decisions.

• Link costing to pricing and strategy
  We connect costs to pricing, mix, and strategy so your team can see, for each product or service, its role in the portfolio.

• Implement and hand over
  We document the model, train your team, and embed dashboards and review routines so it’s run internally, not as a black box.

Why Work With 3Ms Business Instead of a Big Firm?

• Costing that serves owners, not just accountants
  We focus on decisions and cash, not just compliance or allocations.

• Built for GCC industries
  We understand local realities: imported inputs, currency swings, subcontracting, long-term projects, visas, and EOSB.

• Hands-on model building
  You don’t get a slide that says “implement ABC”. You get a working model in Sheets/Excel that your finance and operations teams can maintain.

• Direct access to experience
  You work directly with a consultant who has years in costing, pricing, and operations – not a rotating junior team.

Engagement Options

• Costing Health Check – 2–3 weeks
  Rapid review of your current costing logic, key products/services, and capacity. Identifies major blind spots and improvement opportunities.

• True Cost & Mix Upgrade – 6–8 weeks
  Includes CO-01 (True Cost Scan) and CO-02 (Capacity & Mix Optimization). Delivers a working model and clear product/service portfolio decisions.

• Cost Discipline System – 8–10 weeks
  Includes CO-01, CO-02, and CO-03. Builds dashboards, review routines, and governance so costing becomes a permanent management tool.

Final CTA

Ready to See Which Products Truly Earn Their Place?

Share a simple export of your current product or project list with basic volumes and margins, and we’ll show you how a costing strategy upgrade could change your mix, pricing, and capacity decisions.