Haha. Anything but. If you have one product, sure it's easy. But if you have a diverse product offering things quickly spin out of control.
I see this a lot in my current company.
Low margin hard to maintain product being pushed over high margin easy to maintain because the pricing (and margin) calculations don't take into account the tech support burden.
Having proper understanding of this the cost to support different product lines is difficult for large companies and the comp structure is usually just straight up gross revenue. For those higher up margin begins to play a factor, but they usually doesn't account for where the "overhead" gets spent.
I can, with almost 100% confidence, assure you that upper management understands this. There is some value that those high-dollar, low-margin transactions provide that isn't realized on the company balance sheet. It could be that your company's board or investors are asleep at the wheel, or haven't looked too closely at the books, or there aren't adequate company controls.
They could be positioning for some sort of exit, or are just trying to juggle the company afloat until they solve what seems to be an unsolvable problem.
If what your saying is really true though, that would be enough to motivate me to look for another job.
It would be much worse if they were just clueless about this.
I see this a lot in my current company.
Low margin hard to maintain product being pushed over high margin easy to maintain because the pricing (and margin) calculations don't take into account the tech support burden.
Having proper understanding of this the cost to support different product lines is difficult for large companies and the comp structure is usually just straight up gross revenue. For those higher up margin begins to play a factor, but they usually doesn't account for where the "overhead" gets spent.