Periodically, every business must decide as to whether to change their sales prices. But are the changes in unit prices you recently implemented benefiting your bottom line, or harming it? And are the changes in selling prices covering the changes in purchased unit costs over the same timeframe?
To answer this question, GrandMetrics provides a “Price-Volume Variance Analysis” that analyzes the impact of changes in unit selling prices, unit purchased cost, and sales volumes (i.e. units sold). This report compares your sales activity for a current period (after price changes went into effect), against the sales activity of a corresponding former period (before the prices changes went into effect) and sheds light as to whether the last round of price increases positively impacted your bottom line, or whether it caused a loss in sales volumes that negatively impacted your bottom line. It also factors in changes in vendor unit costs, to determine if the selling price increases are covering possible vendor unit cost changes.
The analysis is performed at a SKU level, so it can be rolled up to show the overall company impact, or just the impact on a product type, a customer segment or a customer.