Identifying Margin Leakage with Waterfall Charts

In this tutorial we'll be exploring the features that help you identify margin leakage and opportunities for margin improvement using the Pricing Waterfall chart in Pricefx.

Margin leakage reduces margin, but rather than being driven by cost increases or market forces, which result in Margin Compression, leakage occurs when concessions are made, which reduces profits.

Margin leakage can come in many forms, including promotions, discounts and other price concessions, off-invoice incentives and trade promotions, and costs to serve.

Being able to identify them is key to taking action and within the Pricefx Analytics module, the Pricing Waterfall is the best place to easily view this information.