Data Visualization

Blog of the Data Visualization & Communication Course at OSB-AUB

“This is my favorite part about analytics: Taking boring flat data and bringing it to life through visualization” John Tukey

What If Your Best-Selling Item Is Actually a Loss?

What If Your Best-Selling Item Is Actually a Loss?

by | Nov 21, 2025 | Uncategorized

In Japan, it is common for businesses to rely on the belief that well-crafted, reliable products can sell themselves without heavy marketing. One small online furniture shop followed this philosophy closely, focusing on quality materials, clean design, and dependable service rather than advertising campaigns.

The approach worked.

Orders were steady, reviews were positive, and most furniture categories- including chairs, shelves, bookcases, and storage units- consistently generated profit. By all traditional indicators, the business was healthy.

Yet something remained unusual: despite growing revenue, overall profit growth was slower than expected. The business was performing well, but its profitability did not scale proportionally with sales. This discrepancy prompted a closer look into where exactly profit was coming from, and where it might be slipping away.

To investigate the issue, a visualization was created to compare profit across all product subcategories. The results were striking. Almost every bar on the chart showed positive profit. Except one.

Tables: -$64,083.
The only unprofitable subcategory in the entire catalog.

    This finding was particularly surprising because tables were not low-demand items; in fact they were bestsellers. From a revenue standpoint, tables performed extremely well.

    However, when analyzed beyond the point of sale, the underlying issue became clear. Tables carried significantly higher operational costs than any other category:

    • They required two delivery workers due to their size and weight
    • They were difficult to deliver in most Japanese apartments with narrow hallways and small elevators
    • They consumed significant warehouse space because of their bulky shape
    • They were more prone to scratches or delivery damage, leading to replacements and refunds

    In short, tables were profitable at the moment of sale but unprofitable everywhere after the sale.
    The business was not struggling because demand was weak- it was struggling because one high-demand product quietly erased a portion of the gains made by every other category.

    Recognizing this pattern allowed the company to take targeted action to correct the issue. Several operational improvements were introduced:

    • Table packaging was redesigned to better withstand delivery
    • A modest oversized-item surcharge was added to reflect true handling costs
    • Warehouse organization was adjusted to reduce movement and handling time

    These adjustments helped the business align its operational costs with its revenue, restoring profit balance across the catalog.

    The visualization ultimately highlighted a broader lesson:

    A product can be popular, well-reviewed, and frequently purchased- yet still unprofitable if its hidden costs exceed what it brings in.

    Revenue alone does not determine success. Understanding the full journey of a product, from warehouse to delivery, is essential for sustaining a healthy business.

Why Tables Are Dragging Profit Down: A Quick Look at Subcategory Performance

by | Nov 19, 2025 | Uncategorized

When we first began reviewing the company’s profitability across subcategories, one issue kept resurfacing: some segments were growing steadily, while others quietly chipped away at our overall performance. We suspected that a few subcategories were dragging profit down, but we needed a clear, visual way to identify which ones.

That led us to build a simplified profit-by-subcategory chart, removing unnecessary clutter and focusing only on the message that mattered. Once visualized, something became immediately clear: while most subcategories contribute positively to profit, Tables are the only one with a significant negative profit, sitting at a loss of around 64,000. By contrast, categories like Copiers and Office Supplies deliver strong, healthy profit levels, forming the backbone of our performance.

What makes this finding important is that it highlights a very specific point of leakage in an otherwise positive portfolio. Without a visual breakdown, this loss could easily be buried under the stronger-performing categories. But by isolating each subcategory and color-coding the negative performer, the issue becomes impossible to miss.

In other words, this visualization isn’t just a chart — it’s a diagnostic tool. It points directly to where strategic attention is needed. Should we reassess pricing? Review supplier costs? Consider reducing discounts or adjusting inventory? Tables clearly require deeper investigation to understand why they are underperforming while similar categories such as Chairs, Bookcases, and Furnishings show stable or positive profit outcomes.

This insight gives us a starting point, not an ending. With Tables clearly flagged as the outlier, we now know exactly where to begin our analysis, and we can allocate time and resources efficiently instead of combing through dozens of product lines blindly.

Where to STOP?

Where to STOP?

by | May 5, 2020 | Visualization

 

Looking at a super store data, managers are highly interested to have a clear view about their product lines and their relation to profits and losses.

For this reason a visualization of profits per product subcategories highlights the areas where high losses occur. This graph reflects the profits that each sub-category of items generates. It is clear that for this store, tables are losing and they are generating losses instead of profits. For this reason it is recommended to discontinue selling tables and Focus on other items generating high profits such as Copies and phones.