Skip to content
Schedule an introductory meeting

Training · 04

All programmes

Pricing, Margin and Commercial Performance in Sales

Manage price, margin and sales in one equation.

Duration
2 daysalso as 1 day or 4 half days
Participants
Sized to your teamwe agree the group size together
Method
Interactive workshopcase work, Excel calculations, group work
Trainers

Builds a shared commercial equation where sales wants volume, finance wants margin and management wants both. Participants work through the leakage from list price to pocket price, the volume a discount must earn back, customer and product profitability, and how a sales result splits into price, volume and mix effects. Over two days they work on the commercial decisions of a fictional water treatment company.

After the programme, participants

  1. 01

    Calculates, at the table and in five minutes, the effect of a price, discount or promotion offer on contribution margin and operating profit.

  2. 02

    Draws the waterfall from list price to pocket price for their own product and names the largest leak.

  3. 03

    Answers a discount request with “how many more units do we need to sell?”; compares the options for passing a cost increase on to price with figures.

  4. 04

    Reads customer and product profitability together with cost-to-serve; prepares a negotiation option for a loss-making customer.

  5. 05

    Splits the sales result into price, volume, mix and cost effects and runs the monthly commercial meeting with this bridge.

  6. 06

    Redesigns the discount authority matrix and the sales indicator (KPI) set so that they protect margin.

The two days

Day 1

  1. The commercial equation: volume, price, cost and margin
  2. The real price: from list price to pocket price
  3. The volume a discount must earn back, and pricing changes
  4. Setting prices and managing price increases

Day 2

  1. Customer and product profitability, with cost-to-serve
  2. Sales performance: the price-volume-mix bridge and sales indicators
  3. Pricing governance and the commercial performance rhythm