Price Volume Mix Analyzer
Bridge the gap between last year's revenue and this year's. Identify how much growth came from Price increases vs Volume growth.
Product Data
Revenue Bridge
Variance Report
Total Revenue Change: +$14,500
Pricing Power
Price changes contributed $9,500 to the variance. You successfully passed on costs or captured value.
Sales Performance
Volume changes contributed $5,000.
Net Result
The final bar shows where you landed. Ensure Price drops were compensated by enough Volume lift.
Execution Steps
Enter Prior Year (PY) Price and Volume for your key products.
Enter Current Year (CY) Price and Volume.
The Waterfall Chart visualizes the bridge.
Positive 'Price Effect' means you successfully raised prices. Positive 'Volume Effect' means you sold more units.
Pro Strategy
- If Price Effect is positive but Volume Effect is negative, you raised prices but lost customers. Check if the net result is positive.
- Healthy growth usually comes from a balance of both.
- Use this for QBRs (Quarterly Business Reviews) to explain revenue performance to stakeholders.
Core Concepts
Price Effect
Revenue change due strictly to price changes. Formula: (New Price - Old Price) * New Volume.
Volume Effect
Revenue change due strictly to quantity changes. Formula: (New Vol - Old Vol) * Old Price.
Mix Effect
Revenue change due to selling a higher proportion of expensive items vs cheap items. (Captured in aggregate totals here).
What is Price Volume Mix Analyzer?
PVM (Price-Volume-Mix) Analysis is a management accounting technique. It bridges the variance between two periods. This tool visualizes the contribution of pricing decisions vs sales execution to the top line.
Best For
- • End of year financial review.
- • Analyzing a specific product category performance.
- • Diagnosing why revenue missed targets despite high volume.
Limitations
- • Simplified calculation (standard variety).
- • Doesn't separate 'Mix' explicitly in this view (it blends into Vol/Price aggregates depending on method).
- • Revenue focus only.
Alternative Methods
Margin Bridge
Similar analysis but focusing on Gross Profit dollars.
Industry Applications
See how this methodology generates real revenue uplift in different sectors.
Beverage Company
Revenue was flat year-over-year.
PVM Analysis showed Price Effect was +$5M (inflation adjustments) but Volume Effect was -$5M.
SaaS Scale-up
Investors asked why growth slowed.
Chart showed Volume Effect was massive (+50%) but Price Effect was negative (-10%) due to heavy discounting.