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Numbers Made Simple

Your Bestseller Might Not Be Your Best Earner: How to Find the Products That Actually Make You Money

The product you sell the most of is not always the one that earns you the most. A plain-language guide to ranking your products by the peso profit they actually bring in, so you push the right ones into your busiest season instead of just the loudest ones.

By Sarah Songalia, CPA · Founder, Quenta

Business owners & accountants·8 min read·

Ask a business owner which product is their best, and the answer usually comes quickly. It is the one that sells the most. The bestseller. The product customers ask for by name. The one you keep restocking because it seems to disappear almost as soon as it reaches the shelf.

And of course, you should be proud of that. Creating something people consistently want to buy is an achievement. But there is another question I want you to ask. Is the product that sells the most also the product that earns you the most? Because those are not always the same thing.

A product can keep your store busy, your staff busy, and your sales numbers looking impressive, and still contribute less to your business than another product that sells far fewer units. That is the difference between sales volume and what each product actually contributes to your business.

And as we approach the ber-months, that difference matters. Soon, many business owners will start deciding what to stock more of, what to promote, what to bundle, and where to put limited working capital. The instinct is often to put more money behind the bestseller. Sometimes that is exactly the right decision. But sometimes, your bestseller is simply your busiest product, not your best earner. Before the season gets busy, let us find out which is which.

Key takeaways

  • Your bestseller is the product you sell the most of. Your best earner is the product that contributes the most pesos toward covering your operating costs and ultimately generating profit.
  • One useful number to look at is contribution margin: selling price minus the costs that change when you sell one additional unit.
  • To understand a product's total contribution, multiply its contribution margin per unit by the number of units you sell.
  • A high-volume product with a very thin contribution margin can contribute less to the business than a lower-volume product with a healthier margin.
  • Before the ber-months, look beyond what moves fastest. Know which products deserve more inventory, more promotion, and more of your cash.

Volume feels like profit. But it is not the same thing.

There is a reason business owners naturally pay attention to their bestsellers. You can see them move. Every sale gives you visible proof that something is working. The orders come in. Inventory leaves the shelf. Customers come back for the same product. Movement is easy to see. Margin is quieter.

And because volume is so visible, we can easily begin to assume that the product selling the most must also be the product making us the most money. That is where the numbers can surprise you.

For every product you sell, ask a simple question: after I sell one unit and pay the costs directly associated with that sale, how much is left to help run the rest of the business? Accountants call this contribution margin. The name sounds more complicated than the idea. If you sell something for 100 pesos and the costs directly associated with producing or buying that item amount to 60 pesos, then that sale contributes 40 pesos toward covering the rest of your business expenses, and, once those expenses are covered, toward profit.

Units sold tell you how busy a product keeps you. Contribution margin tells you how much each sale helps carry the business.

And once you multiply that amount by the number of units you actually sell, you begin to see which products are doing more of the financial work.

The busy product and the quiet earner

Let us take a simple example. Imagine a small cafe selling two products. The first is its house coffee. It is the clear bestseller. Customers order it every day. The second is a specialty cake slice. It sells much less frequently, perhaps something customers buy on payday, during a meeting, or when they want a small treat. If you looked only at volume, there would be no contest. The coffee is the star. But let us look at the numbers.

  • House coffee: selling price 120 pesos, variable cost per cup 95 pesos, contribution margin 25 pesos per cup. At 500 cups a month, that is 500 times 25, or 12,500 pesos total contribution.
  • Cake slice: selling price 180 pesos, variable cost per slice 70 pesos, contribution margin 110 pesos per slice. At 120 slices a month, that is 120 times 110, or 13,200 pesos total contribution.

House coffee (bestseller)

₱12,500

500 cups, ₱25 margin each

Cake slice (quiet earner)

₱13,200

120 slices, ₱110 margin each

Now look at what happened. The cafe sells more than four times as many cups of coffee as slices of cake. Yet the cake contributes more pesos to the business. The coffee contributes 12,500 pesos. The cake contributes 13,200 pesos.

This does not mean the owner should stop selling coffee. Far from it. The coffee may bring customers through the door. It may lead to other purchases. It may be part of the cafe's identity. It may even create repeat business that eventually drives the sale of higher-margin products. Those things matter.

But the numbers reveal something the owner might otherwise miss: the cake deserves more attention than its sales volume suggests. Perhaps it should be displayed more prominently. Perhaps it could be bundled with coffee. Perhaps the cafe could introduce more products with similar economics. Or perhaps the coffee itself needs another look at pricing, portioning, sourcing, or cost.

The numbers do not automatically tell you what decision to make. They tell you where to look.

How to rank your own products

You do not need to analyze every single product in your business tomorrow. Start with the products that matter most. If you have 200 SKUs, begin with your top 10 or 20. You can always go deeper later. For each product, write down its selling price, its variable cost per unit, its contribution margin per unit, its average units sold, and its total contribution.

The calculation is simple. Selling price minus variable cost gives you the contribution margin per unit. Then contribution margin per unit times units sold gives you the total contribution. Once you have the numbers, rank your products by total peso contribution, not only by units sold or total sales revenue. That new ranking is where things become interesting.

You may discover that some of your highest-volume products are indeed your strongest earners. Good. Now you know. But you may also discover a product that sells constantly while giving you very little room after every sale. Or a quieter product that has been contributing much more than you realised. Those are the products worth discussing.

  • Should the low-margin bestseller be repriced?
  • Can its cost be reduced?
  • Can it be bundled with something more profitable?
  • Can the higher-contribution product be promoted more?
  • Should you allocate more inventory to it before the busy season?

This is where a simple financial calculation becomes a business decision.

Do not look at margin in isolation

There is one important caution here. Contribution margin does not equal net profit. It looks at the costs that change when you sell the product. It does not automatically allocate all the fixed costs sitting behind the business, rent, salaries, software, depreciation, administrative expenses, and the many other costs you pay whether you sell one unit or one thousand. So when I say a product is your best earner in this discussion, I mean it contributes the most toward covering those costs and ultimately generating profit.

That distinction matters. You should also consider whether the product requires unusual amounts of labor, storage space, working capital, spoilage risk, delivery effort, or after-sales support. Numbers should give you clarity, not false certainty. The goal is not to choose your entire product strategy based on one calculation. The goal is to stop making important decisions based only on what appears to be selling well.

Your products are also competing for your cash

There is another reason this matters before the ber-months. Every peso you put into inventory is a peso you cannot use somewhere else until that inventory sells. So your products are not only competing for customers. They are competing for your cash.

If you stock heavily on a product that moves quickly but contributes very little, your money may be working much harder than it needs to. On the other hand, a product with a healthy contribution and reasonable turnover may deserve more of your available working capital.

This is also why product profitability cannot be separated from inventory management. A product that sells slowly and contributes little may be doing two things at once: earning very little and keeping your cash asleep on the shelf. That is the same idea we discussed in slow-moving stock is sleeping money. And once you understand how much each sale really contributes, you can also calculate your break-even point more meaningfully.

These are not separate finance lessons. They are different views of the same business. Your pricing affects your margin. Your margin affects your break-even. Your inventory affects your cash. And all of them affect how much of your sales eventually reaches the bottom line.

The better question is not simply, "What should we sell more of?"

For accountants and finance teams, this is also where reporting becomes advisory. Instead of presenting an owner with a sales report and saying, these are your top products, put volume beside contribution. Then the conversation changes. Instead of asking how do we sell more, you can begin asking what should we sell more of. That is a much better question. Because growth should not simply make the business busier. It should make the business stronger.

Seeing the story while there is still time to act

You can absolutely do this exercise in a spreadsheet. In fact, I think every business owner should do it manually at least once. There is something valuable about sitting down with your own numbers and seeing for yourself how price, cost, volume, and contribution work together. But this should not be an exercise you have to reconstruct from scratch every month. By the time your accountant prepares the report, the pricing decision may already have been made. The inventory may already have been purchased. The promotion may already have ended. Financial information becomes far more useful when you can see it while there is still time to do something about it.

That is also why costing and pricing should not sit apart from inventory. In Quenta, costing and pricing are embedded within the Inventory module because those decisions are connected. What you pay for a product, what it costs you to bring it to a saleable condition, how you price it, how quickly it moves, and how much it contributes to the business are all part of the same story.

And that story should connect to the rest of your financial picture. This is the thinking behind Quenta as your Financial Command Center. Sales, costing, pricing, inventory, cash, and financial performance should not live in separate spreadsheets or be understood only after the month has ended. They should come together so you can see not only what is selling, but whether you are selling it at the right price, earning enough from it, and putting your working capital behind the products that make the most sense for the business. Because the real question is not simply what are we selling. It is what is actually creating value for the business.

Before the ber-months begin, try this with just two products. Take your proudest bestseller. Then choose one quieter product that you think may have better economics. Calculate the contribution per unit. Then calculate the total contribution for the month. Your bestseller may keep its crown. Or you may discover that another product has quietly been doing far more of the financial work than you realised. Either way, you will enter your busiest season knowing something far more useful than what sells the most. You will know what deserves more of your attention, your inventory, and your cash.

The product that sells the most and the product that contributes the most are not always the same. Know which is which before you decide where your next peso goes. Every number tells a story.
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