Worksheet: Separate price, volume, mix and promotion in the monthly pack

An average price line mixes product and promotion effects until it means nothing. This sheet splits the revenue change four ways and adds markdown cost and promotion return beside it. It builds the Competent step of the check:

Price, volume, mix and promo effects are separated in monthly reporting.

Step 1. The split

Work at product level, or product group. "Last year" means the same month last year. Use shelf prices in the price, volume and mix lines, so promotions show on their own line.

Effect	How to calculate it	This month ($)
Price	For each product: this year's shelf price less last year's, times this year's units. Add them up.
Promotion	Discount given on promoted units this year, less the same figure last year. Show it as a negative when it grew.
Volume	Total units this year less last year, times last year's average price across all products.
Mix	For each product: last year's price times this year's units. Add them up. Then subtract total units this year times last year's average price.
Total	Must equal this year's revenue less last year's. Put any remainder on its own line.

e.g. Revenue up $0.8m: price +$0.4m, promotion -$0.3m, volume +$0.9m, mix -$0.2m.

Step 2. Beside the split

Line	This month	Same month last year	Owner
Markdown cost ($)
Promotion return (incremental margin ÷ discount given)
Leakage (vouchers, price matches, goodwill)

Step 3. The pack

Page	Contents	Owner
1	The four-way split, by category
2	Markdown cost and promotion return
3	Actions, three at most, each with a name

Done when: the monthly pack separates price, volume, mix and promotion effects, and markdown cost and promotion return sit beside them.

Adapted from our own margin bridge (Deloitte, 2015).