📊 Gross Profit Analysis – Gel Boomerang - http://www.gel-boomerang.com/

🧩 Project Overview

This project offers an end-to-end financial analysis of Gel Boomerang’s top 10 sales data using Excel, SQL, and Power BI. The focus is on gross profit trends, regional and product performance by product type, and strategic opportunities to maximize profitability. The dataset simulates real-world business scenarios and includes calculations for revenue, cost of goods sold (COGS), and gross profit by region, size, and product.

Report Snapshot

Power BI Report

https://1drv.ms/u/c/b8767baa22f6b9c0/EVWrtfYl0h1Bpqe0G9uRwDYBVvBBY3OG9R2um8LjGWJLSg?e=YTGyh3

❓Business Explorations

1. Gross Profit from Gel Boomerang sales broken down by skill level (Category) and individual Products. (see the stacked bar chart on the Gross Profit Report tab to view Gross profit by boomerang skill level):

   

   Filtered by: Category & Product

2. Profit trends over time. (see the line chart on the Gross Profit Report tab to view Total Rev. & Total COGS MoM).

3. Which regions are most and least profitable? (see the area Map on the Gross Profit by Country tab).

   Filtered by Country

4. Which products are revenue drivers and which are margin-efficient? (see the Scatter plot on the profit margin tab).

   

5. What are the best opportunities for increasing revenue or reducing cost?

   • Created a calculated column titled "Profit Opportunity" with filters for "Review" & "Healthy". Review suggests the gross profit margin (GP%) is below 25%, meaning the product may not be generating enough profit. Healthy suggests that the gross profit margin (GP%) is below 25%.

     

6. How do different products contribute to the overall product mix and their impact on gross profit margin by margin category (High Margin vs. Low Margin)?

   

   • (see Business Recommendations below)

🔍 Key Insights

1. Gross profit margin is below 25% for all products and category's indicating high production costs, pricing inefficiencies, or thin margins, prompting a review of cost structures or pricing strategies.

2. Regional Performance:

   • The West region accounted for the highest gross profit and most sales volume, indicating strong product-market fit and customer engagement in that area.

   • Smallest boomerangs had the lowest sales volume but the highest profit margins.

3. Time-based Patterns:

   • Monthly sales show consistent peaks in Q4 (December), suggesting seasonality or strong campaign performance during those periods.

4. Product Mix %:

   • Showing the percentage share of each product in the total mix. Higher percentages indicate products that contribute more significantly to revenue.

     ✔ Margin Categories: Your chart categorizes products into High Margin and Low Margin, helping identify which products generate the most profit.

     ✔ Insights to Highlight:

     • Quad dominates the mix, but it primarily falls under Low Margin, meaning it sells a lot but isn't as profitable.
     • Fun Fly has the most presence in High Margin, indicating strong profitability despite a lower percentage in product mix.
     • Other products, like Bellen and Bower Aussie Round, show smaller contributions, suggesting their impact on overall margin is more limited.

💡Business Recommendations

1. Promote smallest boomerang sizes

   • Increasing visibility through bundled offers, ads, or seasonal promotions can boost volume profitably.

2. Option 1: Focus on strategies to increase profitability across all regions by reducing Cost of Goods Sold (COGS):

   • Negotiate Supplier Costs – Renegotiate contracts with vendors to secure better pricing or bulk discounts.
   • Optimize Inventory Management – Reduce waste, excess stock, and inefficient purchasing practices.
   • Improve Production Efficiency – Streamline processes, reduce defects, and lower operational costs.

   Option 2: Adjust Pricing Strategies:

   • Increase Prices Strategically – Analyze which products can sustain a price increase without losing demand.
   • Introduce Tiered Pricing – Offer premium versions of products with higher perceived value and pricing flexibility.
   • Bundle Products – Combine lower-margin items with high-margin ones to improve overall profitability.

3. Focus investment in the West region

   • Since it leads in both gross profit and volume, reinforcing efforts here (ads, loyalty campaigns) can generate reliable growth.

4. Evaluate pricing strategies for larger sizes

   • Large boomerangs sell well but deliver lower profit per unit. Investigate COGS and adjust pricing or production costs to improve margin.

📊 Dashboard KPIs

• Total Revenue
• Total COGS
• Gross Profit Revenue
• Gross Margin %
• Gross Profit by Country
• Top 10 Products
• Margin Efficiency vs Revenue Drivers
• Product Mix Impact on Gross Profit Margin

🔧 Tools & Technologies

• Excel Data Model with Power Pivot and Power Query
• SQL for querying structured data from a columnar database
• Power BI Desktop for visualization and interactive dashboards
• DAX (Data Analysis Expressions) for calculated measures and KPIs
• Excel Utilities: Flash Fill, Sort, Filter, Pivot Tables, Charts

🧠 What I Learned

• Translating raw sales and cost data into business-impactful financial metrics
• Understanding profit drivers and using data storytelling to support strategic decisions
• Creating scalable financial dashboards for analysis
• Aligning visual design with stakeholder priorities for financial reporting

📬 Contact

If you’d like to connect or learn more, feel free to Reach out via LinkedIn, call me at: (469) 400-6430 or email me at rachelpaige@yahoo.com.