Finding
In the simulation, variable contribution falls by $157,706. Higher realized prices add $979,360, while higher unit costs subtract $1,380,513. Volume and mix complete the reconciliation. Revenue growth alone would miss the cost pressure.
Why it matters
Use the bridge to identify contracts for review before proposing a general price increase. Check service-cost allocations and test how demand could respond.
Who could use this
Commercial finance and pricing teams reviewing customer and product profitability.
Data and scope
180 synthetic customer-product-period records across 30 fictional customers and two illustrative annual snapshots. No company operating data are used.
How the analysis works
Python and SQL separate volume, product/customer mix, realized price and variable cost in an exactly reconciling ordered margin bridge. A 135-case grid varies price, elasticity, churn and cost inflation.
Limits of the evidence
Elasticities, churn and allocated service costs are invented. The three-year NPV excludes tax, capex, working capital and service costs. No willingness to pay or actual savings is estimated.