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Profit Centers

Cost Centers

9 Examples of Profit Centers

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Profit centers are departments, teams and other organizational units that are responsible for profit & loss. Alternatively, profit center also has a watered-down definition -- an organizational unit that is responsible for revenue. The following are common examples of profit centers.

Business Units

A business unit is a team that is responsible for profit & loss (P&L) for some aspect of a business such as a brand, product line or geographical region.

Retail Stores

Retail locations are evaluated on a profit and loss basis and are profit centers.

Service Locations

Service locations such as a hotel.

Channels

In some cases, a marketing channel such as ecommerce may be responsible for profit & loss.

Brands

It is common for firms to be structured into a series of separate brands that are each responsible for profit & loss.

Sales Regions

Sales offices responsible for profits across a region.

Customer Segments

Departments that service a particular customer segment such as a wealth management team at a bank that is responsible for wealthy clients.

Business Development

Teams that are responsible for growing new products, services and brands.

Sales Offices

If you go by the weaker definition of a profit center, as a revenue generating team, a sales team is a profit center even in cases where they aren't fully responsible for profit & loss.

Overview

An organization can be structured into many profit centers in order to ensure that various brands, products, locations, customer segments and channels are being managed profitably.

Summary

The following are the common types of department that are viewed as profit centers.

Business Unit

This is the complete list of articles we have written about business unit.
Business Unit
Cost Centers
Line Of Business
Organizations
Product Line
Profit Centers
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Business Unit

A definition of business unit.

Cost Centers

An overview of cost centers and comparison to profit centers with examples.

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Common types of organizational structure.

Workforce

The definition of workforce with examples.

Management Structure

An of management structure with examples.

Organizational Planning

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Organizational Goals

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Organizational Strategy

An overview of organizational strategy with examples.

Job Grades

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Organizational Attributes

An overview of organizational attributes with examples.

Operations

An overview of business operations and its four main types.

Management Authority

The basic types of management authority.

Culture Examples

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