PRICE
DiscountingPricing architectureCommercial termsMix
Revenue captured below the value being created.
Cost & Margin Improvement
Understand what is really
driving the economics.
Cost and margin are rarely controlled by one function. We help businesses see the drivers behind the number, quantify where value is being lost, and design the changes that improve performance.
The Question
Revenue can grow while the
economics get worse. Why?
Revenue is growing. Why isn't margin keeping pace?
We reduced cost. Why didn't profitability improve?
Some customers are growing faster than others. Are they actually more valuable?
We know our margin. Do we know what is really driving it?
The real question is not what is the margin. It is what decisions are creating the margin.
Where does the margin go?
Scroll to watch the economic system build. Each connection reveals how a decision in one area affects the economics of the whole business.
01
Revenue is the top line, but it is shaped by price, volume, mix, customer and channel decisions.
02
Cost-to-serve is where the economics begin to erode: procurement, operations, logistics and complexity all feed it.
03
Margin is what remains, created by the interaction of every decision above, not by any single function.
04
Margin flows into cash and growth: the business outcomes the economics actually enable.
05
The economics are a system. A number on the P&L is the result of many interconnected decisions.
Where Performance Leaks
The visible number is not always the real problem.
COST
ProcurementMaterialManufacturingLogisticsOverheads
Cost accumulated without a clear line to the customer it serves.
COMPLEXITY
ProductsCustomersChannelsLocationsProcesses
Hidden cost embedded in the width of the portfolio and the network.
COST-TO-SERVE
Customer economicsOrder patternsService requirementsDistributionOperational effort
The true cost of serving a customer, channel or product is not visible.
From Number To Driver
Don't manage the number.
Understand the driver.
Illustrative example, not a client result
MARGIN ↓The observed number
Product mixThe driver behind the number
Low-margin products / customer combinationsThe root cause
Pricing / sourcing / portfolio decisionThe intervention
Improved economicsThe business impact
What We Look At
The economics sit across the business.
REVENUE
PriceVolumeMixCustomerChannel
COST
ProcurementManufacturingLogisticsOverheads
COMPLEXITY
ProductsCustomersLocationsProcesses
WORKING CAPITAL
InventoryReceivablesPayables
How We Work
Find the driver. Quantify the opportunity. Change what matters.
DIAGNOSEFind the real driver.
QUANTIFYUnderstand the economic impact.
DESIGNBuild the intervention.
EXECUTEPut the change into operation.
IMPROVETrack whether the economics actually move.
What Changes
When the economics become visible, decisions change.
Clearer economics
Better pricing decisions
More profitable growth
Lower cost-to-serve
Better resource allocation
Stronger margin visibility
Improved cash generation
Evidence
Margin problems rarely begin in the margin line.
An apparent margin issue can originate in pricing decisions, product and customer mix, procurement economics, manufacturing efficiency, service requirements that inflate cost-to-serve, portfolio complexity, or working capital trapped in the system. The work is to find where it actually sits, and change that.
Margin isn't keeping pace with growth?
Start with a focused Cost & Margin Diagnostic.
Take the Cost & Margin Diagnostic →The number is the symptom.
The decisions behind it are the story.
If something isn't working the way you think it should, start there.
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