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
How to Fight a Price War
In this on-demand webinar, learn strategies and tactics for preventing a price war, handling "dumb" competitors, de-escalating and avoiding provocative situations, and winning without actually fighting.View This Webinar
How to Retain Your Key Customers
When you lose business from existing accounts, the sales team must acquire even more new business to compensate. In this on-demand training session, learn how pricing analysis skills are ideal to identify and minimize revenue attrition and customer defection.View This Webinar
Avoiding Five Margin-Killing MarCom Mistakes
A guide to common marketing communication mistakes that reduce your perceived value and pricing power.View This Guide
Tales from the Trenches in B2B Pricing
Pricing improvement in B2B can be a messy affair. In this on-demand webinar, glean insights from ten cautionary case studies so you don't repeat the same mistakes and miscalculations.View This Webinar
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
Come Join Our Next Webinar
Making Price Increases Stick
How to Capture What You Really Need From Your Price Increases