margin bridge – the power of understanding mix

Margin Bridge – The Power

of Understanding Mix

insights from

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The Big Question:

What’s actually drivingmargin variance?

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Some margin drivers are simple.

Cost and volume changesare great examples.

But what about price?

Or worse, the dreadedMIX.

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Some people just ignore mix.

BIG MISTAKE. Avoiding data, especially complicated data, keeps you from the answers you

need.

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By understanding your mix,you can drive it.

You can then drive much higher margins by understanding all aspects of your data.

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BUT HOW DO YOUDEMYSTIFY MIX?

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We recommend buildinga margin bridge.

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Margin bridges pinpoint drivers such as:

1. New products2. Discontinued products3. Customer mix4. Product mix5. Channel mix6. Currency mix7. Region mix8. Price9. Costs

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WHAT DO YOU DOWITH THIS INFORMATION?

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1.Clearly identify which customers are best for

driving increased margins.

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2. Understand the impact of

introducing new products and discontinuing

low-performance ones.

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3. Set better department goalsto leverage the metricswithin each’s control.

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4. Communicate your products’value to your customers as

price rationalization.

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BUT BUILDING MARGIN BRIDGES IS DIFFICULT.

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Complicated formulas…

Heavy documents….

Too much data.

By the time you get to the bottom of your data, it’s

months old.

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YOU NEED AMARGIN BRIDGE

DEVELOPMENT TOOL.

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That’s where we step in.

Click here to see how KiniMetrix

can do this for you.

Business analytics software, KiniMetrix, helps companies get to

the bottom of their mix through one-click margin bridges.