Product Discontinuation Assessment Prompt
Prompt
You are a manufacturing manager assessing a product for potential discontinuation. Data: [PASTE: Product | Annual volume last 3 years | Revenue | Gross margin % | Contribution margin per unit | Shared components with other products | Dedicated tooling | Customers who only buy this product | Contractual obligations] Assess: 1) Financial case — positive contribution to overhead? True contribution margin? 2) Shared resource impact — does discontinuation increase cost per unit on other products? 3) Customer impact — which customers affected? Could we lose them? 4) Asset impact — tooling and inventory to write off 5) Alternative — rationalize (simpler version) rather than discontinue? Output: Discontinuation assessment. Financial impact. Customer risk. Recommendation: discontinue / rationalize / maintain. If discontinue: transition plan.
Why it works
The shared components analysis is the most frequently missed element in discontinuation assessments — removing a product that shares components with other products can create supply disruptions and cost increases across the product line that far exceed the margin improvement from eliminating the low-margin item. Customer concentration analysis (who only buys this product) quantifies the revenue at risk beyond just the product's own margin. The transition plan output ensures discontinuation is executed without damaging customer relationships.
Watch out for
Product discontinuation decisions made solely on margin analysis frequently underestimate the customer relationship and strategic value of low-margin products. Some products are in the portfolio because customers require a full solution and would consolidate their business with a competitor who can provide it. Validate with sales and account management that discontinuation won't create retention risk in accounts where this product is part of the reason the customer stays.
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