But in the absence of real information your employees will create that information and rumors will start regarding sales, profits and other financial related aspects of the organization. Most of it will be false and very misleading. This can cause morale and communication problems. Providing selective information will help head off false rumors and make employees feel more a part of the process. Your Product Mix An often overlooked factor in profitability is product mix.
Product mix is nothing more than the combination of units sold by product.
Managing your product mix means shifting total sales by product to generate more profits. Promoting a particular product in various ways that perhaps carries a higher gross profit can enhance sales of that product significantly. This can lead to a shift in your product mix creating additional bottom line profits. Or perhaps you have the opportunity to introduce a high volume, but slightly lower gross profit product. This introduction can shift the product mix to favor the higher volume product.