Understanding revenue by product is essential for several reasons:
1. Identifying Best Sellers: It helps identify which products are the most popular among customers, allowing businesses to focus their efforts on these items. 2. Resource Allocation: By knowing which products generate the most revenue, companies can allocate resources more efficiently, ensuring that high-performing products receive the necessary support. 3. Strategic Decision Making: Detailed revenue data aids in making strategic decisions, such as which products to discontinue, which to promote, or which to develop further. 4. Profitability Analysis: It allows for a better understanding of each product's profitability, considering both revenue and associated costs.