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
-
Visual Aids for Explaining Price Segmentation
Use this example visual presentation to inspire and aid your efforts in explaining the concepts of price segmentation to others inside your organization.
View This Tool -
How to Explain Price Segmentation to Others
As powerful as it is, price segmentation can sometimes be difficult for people outside of pricing to understand. This tutorial simplifies the concepts so that just about anyone can understand this important and foundational concept.
View This Tutorial -
Assessing Your Pricing Capabilities
While you might think your pricing capabilities are pretty good, how do you really know? How can you tell? In this on-demand webinar, learn how to leverage "3 P" assessments to figure out where you're at and where you need to improve.
View This Webinar -
Stop Living With Subpar Price Execution!
In this Expert Interview, Cath Brands of Flintfox discusses what pricing teams can do to finally address those frustrating and costly price execution issues that have been slowing us down and holding us back.
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