Vendavo’s CFO, Dayton Kellenberger, explains how PVM analysis can help you have a more precise understanding of the factors affecting your company’s performance and profitability.
Analyzing how much each product, service and revenue stream contributes to a company’s bottom line is a challenge for CFOs. One of the tools I use at Vendavo, a pricing optimization software company, is a price-volume-mix analysis.
You might know this type of analysis as a revenue or sales bridge or a variance analysis, but whatever you call it, it can help you explain what’s happening with your performance factors at a granular level.