Why Measure Pricing and
Unit Volume Performance?

Pricing right is the fastest and most effective way to increase profits, yet unfortunately, also the most elusive.

• Does your organization truly understand the impact of a price increase on the bottom-line?
• Are you able to isolate and eliminate the effects of customer/product mix and volume shifts to accurately measure price performance?
• Is your sales force achieving higher price this year than last, but you don't see a positive impact on your corporate bottom-line?
• Would you like to be able to tie sales compensation to actual price and volume targets?

Industry experts cite the following benefits of a 1% price increase:

• An 8% increase in operating profits in a business with an operating margin of 12.5%
• 30% - 60% greater improvement than the impact of a 1% reduction in variable costs (such as materials and direct labor)
• More than 2 to 3X greater than the impact of a 1% increase in unit volume

Accountability is key to an effective pricing strategy

A superior pricing function includes managing all discounts affecting your pocket price and segmenting your business to implement value pricing. But alone, these price optimization strategies do not deliver maximal results.

You must be able to measure optimization and improvement with great detail and accuracy, and hold the right people accountable for price and unit volume performance.

Your sales organization can only control two variables — price and volume. They cannot control costs. You can only hold your sales team accountable for the areas they influence, and only if you have reliable metrics to measure their performance.

KiniMetrix®: Better bottom-line results through greater insight and accountability

KiniMetrix's patent-pending sales analytics software and reporting system goes beyond your financial statements to isolate and highlight pure changes in price, unit volume, and mix. It provides clear, powerful analytics to all stakeholders — sales, marketing, finance, and executive management — enabling your entire team to work around the same set of easily identifiable performance goals.

The KiniMetrix metrics accurately separate revenue changes into price, volume, and mix components across different customers and product lines. Consequently, you can create an incentive structure that rewards your top performers for hitting explicit pricing and unit volume targets, allowing you to hold your sales force accountable for what they can directly control and therefore, execute better in the field.

KiniMetrix also delivers tactical tools to help your sales force make optimal decisions around pricing and unit volumes at the point of sale, allowing you to accurately understand how price and unit volume changes cascade through your business and ultimately impact your bottom-line.

The end result? More accurate, consistent insight for better decision-making to support profitable price and unit-volume improvement in your business.