margin bridge – the power of understanding mix
TRANSCRIPT
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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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.