Challenge:

Healing Solutions, an essential oils catalog of brands, was facing declining profitability despite strong sales volume. The catalog had ballooned to over 2,000 SKUs across multiple sizes, sets, and scent variants. Many of these products had low velocity, poor margins, and were creating operational inefficiencies in forecasting, advertising, and inventory management. Contribution margin was negative, and the brand had limited visibility into which SKUs were truly driving value.

Approach:

Scott led a cross-functional SKU rationalization initiative spanning marketing, finance, and supply chain. The project began with a detailed data analysis of SKU-level performance across three key dimensions: revenue velocity, margin contribution, and inventory turns.

Scott cut 800 underperforming SKUs and launched 129 new high-margin products based on whitespace analysis, customer search data, and competitive gaps. He aligned advertising spend and pricing architecture to the streamlined assortment, ensuring budget and attention flowed toward products with the best ROI.

Results:

• Contribution margin improved from –$413K to +$2.2M year-over-year.

• Catalog complexity reduced by over 40%, improving operational efficiency and forecasting accuracy.

• Inventory health and in-stock rates improved from 82% to 95%, reducing lost sales.

• Advertising efficiency increased as spend was concentrated on top performers, improving ACOS and organic ranking.