Priority: 🔥🔥🔥🔥🔥 | Difficulty: 💪💪💪💪
If your core products are bringing in sales but leaving slim margins, it’s time to think margin.
I speak to so many businesses that say "I can't afford to discount" - meaning their main products have no profit in them, and if this sounds like you, you're never going to scale.
And I am not suggesting you have to change what you are selling, instead, add high-margin complementary products that can supercharge your profit per order.
These add-ons don’t just increase your bottom line, they strengthen your unit economics, which is the most important factor in running a sustainable, profitable business.
What Do You Mean, Unit Economics?
Your unit economics are how much you make (or lose) per order.
If your core products have low margins, your profit per order is thin, and scaling becomes harder. You have to constantly fight for more sales just to stay afloat.
By adding high-margin products into the mix, (even if it is low in value) you can dramatically improve the profitability of every transaction, or give it away for free (see the blog about creating a killer offer) to increase your conversion rate:
- More Profit Per Order: An add-on with a high margin instantly increases your average order value (AOV).
- Lower Customer Acquisition Costs (CAC): If you’re making more profit per order, you can afford to spend more to acquire customers while staying profitable.
- Better Cash Flow: Higher margins mean you’re keeping more of the revenue, giving you room to reinvest in growth.
The result? Continually improving your unit economics is the only way you will continue to scale and stay profitable.
Types of High-Margin Products to Boost Your Profits
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Complementary Products
Products that naturally pair with your core offer and enhance the customer experience.- Selling skincare? Add jade rollers or applicators.
- Selling coffee machines? Upsell premium beans, descalers, or accessories.
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Supplementary Products
Products that keep customers coming back, like refills or replacements.- Razors → Replacement blades.
- Candles → Wick trimmers or refills.
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Premium Add-Ons
Small upgrades with a higher perceived value.- Water bottles → Personalized engraving.
- Furniture → Assembly services or extended warranties.
How to Implement High-Margin Products
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Audit Your Existing Line-Up
Look at your product catalog and spot opportunities to add complementary, supplementary, or upgraded products. -
Leverage Customer Behavior
Analyze purchase data to see what customers buy together. Bundle those items or offer them as add-ons. -
Source High-Value, Low-Cost Products
High-margin doesn’t mean cheap quality. Find products that add real value to customers while being cost-efficient to source. -
Strategically Position High-Margin Products
- On the product page as "Frequently Bought Together"
- At checkout as "One-Click Add-Ons"
- In post-purchase emails as upgrades or reorders
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Measure and Improve
Test different products, placements, and messaging. Track your AOV and profit per unit to identify what works best.
Check out this blog for the quickest way to implement these high margin products into more orders.
Conclusion
Your unit economics are everything. If you’re losing money on every order or breaking even, you do not have a sustainable business.
Adding high-margin products helps you improve:
- Average Order Value (AOV): Customers spend more per purchase.
- Profitability: You keep more profit per order.
- Sustainability: You can afford to acquire more customers without worrying about razor-thin margins.
It’s not about just selling more. It’s about selling smarter.
The math is simple: Better margins = Stronger unit economics = More profit and growth.
This is just one of the strategies in the Double Your Profit in 90 Days Cheat-Sheet. If you haven’t grabbed your copy yet, download it now to get even more actionable tactics to boost your profits.