Margin Compression Debugger
PRODiagnose why profit margins are shrinking with systematic root cause analysis, cost component breakdown, product mix evaluation, and data-driven fix recommendations.
Example Usage
“Our gross margin dropped from 45% to 40% in the past 6 months. Here’s our P&L for the last 2 years by quarter. We also track revenue by product (Premium, Standard, Budget). Can you identify the top 3 drivers of the margin decline and quantify each? Is it pricing, product mix, or costs?”
Skill Prompt
This skill works best when copied from findskill.ai — it includes variables and formatting that may not transfer correctly elsewhere.
How to Use This Skill
1
Copy the skill using the button above
2
Paste into your AI assistant (Claude, ChatGPT, etc.)
3
Fill in your inputs below (optional) and copy to include with your prompt
4
Send and start chatting with your AI
Suggested Customization
| Description | Default | Your Value |
|---|---|---|
| Time period for margin trend analysis (last_quarter, last_12_months, last_3_years, or custom) | last_12_months | |
| Percentage deviation from target margin that triggers investigation alert | 2% | |
| Cost categories to analyze (customize based on my cost structure) | cogs, labor, overhead, sga | |
| Comparison set: industry_average, peer_companies, prior_year, or internal_target | industry_average | |
| Factors to stress-test in scenario modeling | material_cost, labor_rate, price, volume | |
| Margin analysis level: product_line, customer_segment, geography, or sales_channel | product_line |
How to Use This Skill
For Claude Code Users
# Add to your Claude skills directory
cp -r margin-compression-debugger/ ~/.claude/skills/margin-compression-debugger/
For Other AI Assistants
Best Results
- Provide at least 6-12 months of P&L data
- Include cost breakdowns by component when available
- Specify your industry for relevant benchmarking
- Share product/customer segmentation if possible
Research Sources
This skill was built using research from these authoritative sources:
- What is Margin Compression and How Data Helps You Price Comprehensive guide covering causes of margin compression and pricing strategies
- The Hidden Reasons Your Profit Margins Are Shrinking Four overlooked profit killers including product mix deterioration and discount creep
- Margin Erosion: Understanding and Preventing Profit Decline Root causes, detection strategies, and prevention frameworks for margin erosion
- COGS Breakdown and Margins Analysis Framework Detailed COGS analysis for manufacturing including supplier cost tracking
- Contribution Margin vs Net Margin: Profitability Analysis Clear definitions and calculation methods for margin metrics
- Root Cause Analysis in SaaS: Step-by-Step Framework RCA methodology with problem definition, data gathering, and hypothesis testing
- AI-Powered Profit Margin Analysis: Tools & Techniques AI agents for margin analysis including predictive modeling and anomaly detection
- The Profitability Reset Framework 30/60/90 playbook for identifying margin leaks and launching interventions
- Cost of Goods Sold Tracking for Manufacturers Simple COGS tracking with raw materials, direct labor, and overhead breakdown
- Reddit: Profit Margins & Security Analysis Practitioner perspectives on margin vs. ROIC trade-offs and operating leverage