Solutions - How KiniMetrix® Works

Without an in-depth understanding of price measurement, many companies fail to recognize the inherent challenges and complexity in measuring price and unit-volume performance. Through years of experience working with a multitude of clients, we have gained tremendous insight and knowledge around helping companies navigate a successful price measurement and improvement strategy.

At first glance, it is often puzzling to understand why price performance is so difficult to measure. To arrive at the answer, click on the following example:

As illustrated above, even though the company raised prices for both Customer #1 and Customer #2 successfully, the company did not see a 5% benefit on its bottom-line due to the fact that Customer #1 purchased a higher percentage of product this year than last year.

This scenario is the norm for the average mid-sized market business, which has hundreds of customers and products, thereby making accurate measurement of price performance — price-yield a complex challenge.

To help clients bring insight to this issue and create business opportunities, KiniMetrix isolates and eliminates the effects of customer mix shift, product mix shift, and unit-volume shifts between two time periods. Using the Price-Yield measurement as an anchor, our method then enables pure unit-volume measurement, making it a complete sales analytics system.