Why did it happenAny company with a P&LUse case, not a client result
Why did margin fall when volume rose?
Split the movement into price, volume, mix and cost, down to the customers and products behind it.
The decision it informs
Whether the problem is pricing, mix, cost or discipline, and where to act first.
A dashboard shows margin falling. A single bridge shows a few big bars. The real answer sits underneath: which customers, products and cost lines, and whether it is one cause or several.
The questions behind the question.
- Which period is the baseline, and which is the comparison?
- How are costs allocated, and do you trust the allocation?
- Which customers or products do you already suspect?
- What action is possible once we know the answer?
Data we would look at
Invoices by customer and productStandard and actual costsDiscounts, rebates and credit notesFreight and other cost linesThe general ledger
Methods, chosen for this question.
Price, volume, mix and cost bridgeMargin movement split into its four parts, at customer and product level.
Customer and product profitabilityWho and what carries the margin, after the costs that are usually left out.
Leakage tracingDiscounts, rebates and credits that were not in the plan.
- 01Scope
- 02Immerse
- 03Analyse
- 04Test the evidence
- 05Read out and hand over
Findings you can act on.
A layered bridgeThe headline movement, then the customers and products behind each bar.
A profitability mapThe few customers and products that explain most of the change.
A list of actionsEach with the evidence behind it and who owns it.
Price realisation
Product mix
Input cost
Discounts and rebates
Freight
Customer mix
Ask what-if, on your own numbers.
- What if the three largest discounts are capped?
- What if the lowest-margin products are repriced?
- What if freight is passed on?
Is this your question?
Tell us the decision you are trying to make. We will say whether a deep dive is the right way to answer it, and what it would take.