Isolating the Impacts of Price, Volume, Cost and Mix
A Handy Tool for Understanding Where Changes in Revenues and Margins Are Really Coming From
As pricing professionals, we're under constant pressure to explain differences in period-over-period revenues and margin-dollars. Are the revenue increases you're seeing the result of selling more volume, realizing higher prices, or both? What portion of the margin gain you're experiencing is really coming from better prices and how much is actually coming from better costs? And how much of all of it can just be attributed to selling a different mix of products? Answer all of these questions and more with the Impact Isolation Estimator. Using this straightforward spreadsheet-based tool, you can:
- Isolate the impacts that volume, pricing, costs, and mix have had on period-over-period performance changes.
- Quantify how much volume, pricing, costs, and mix have contributed to differences in both revenues and margin dollars.
- Identify where changes in product costs have magnified...or mitigated...improvements in realized prices and volume.
- Put an end to the second guessing, skepticism, and in-fighting over who or what should be getting the credit (or blame).
This tool is just one of hundreds of educational resources you get access to as a PricingBrew Journal subscriber.
More Subscriber-Only Resources From Our Library
-
Avoiding Five Margin-Killing MarCom Mistakes
A guide to common marketing communication mistakes that reduce your perceived value and pricing power.
View This Guide -
Seize the Pricing Opportunity Before Others Do
In this conversation with David Bauders, the Founder and President of Strategic Pricing Associates (SPA), you'll glean insights and tips from his experiences working with hundreds of distributors and manufacturers.
View This Interview -
When to Choose Profit, Revenue, or Both
As pricing people in B2B, we all have to deal with the "corporate schizophrenia" around revenue versus profit. In this conversation with Lydia DiLiello, we discuss how pricing teams can best deal with this oftentimes frustrating dynamic.
View This Interview -
How to Tackle Trade Tariffs
In this insightful conversation, Sean Arnold helps us sort through the issues and understand our options when addressing the latest addition to our list of pricing challenges: trade tariffs.
View This Interview
Why Subscribe?
When you join your peers and become a PricingBrew Journal subscriber, you get immediate access to this tool as well as all of these other features:
- Training WebinarsDozens of on-demand webinars covering crucial pricing topics with new webinars every few weeks
- On-Demand LibraryA searchable library of hundreds of concise guides, tutorials, cases, assessments, and research reports
- Expert InterviewsLearn from others in pricing who’ve “Been There and Done That” through our Expert Interview Series
- Help DeskAsk our team of analysts for advice, insights, and perspectives on your specific pricing challenges