What if 3mm is the only thing standing between a loss leader and a wildly profitable product? Most building product manufacturers would laugh at the thought. They are too busy optimizing material costs and chasing labor savings to notice the invisible profit killer hiding in plain sight.
I have seen this hairline difference transform entire P&Ls, turning products that barely break even into margin monsters that fund company growth.
Beyond COGS
Here is what I have learned from launching products that opened entirely new markets: the companies winning in construction are not the ones with the lowest possible cost of goods sold (COGS).
They are the ones who understand what comes after cost optimization.
Modern Challenges
The building products sector faces unprecedented economic volatility.
Family owned manufacturers that operate in global markets also have challenges with multiple currencies, regulatory environments, and cultural business practices.
Conclusion
The main takeaway is that focusing only on minimizing costs can blind companies to greater opportunities for profit. True market leaders look beyond the obvious savings to find small, critical adjustments that create massive value.
This insight became so layered with implications once I started writing it, that I decided to split it into a three part series.
Check out the full article to learn more about a profit first design.
