Pricing and contribution
Examine the customer response a proposed price needs to produce, the service included and the costs that remain if volume changes.
Explore this servicePrice, demand and the resources committed.
A proposed price rise assumes a response from customers. An expansion assumes demand for the capacity it adds. We examine those assumptions alongside the terms and resources the business would commit.
The assessment shows how the contribution and capital required change if customers buy less, renew differently or need a different service.
About CrownpointPricing and contribution
Examine the customer response a proposed price needs to produce, the service included and the costs that remain if volume changes.
Explore this service
Portfolio economics
Compare retaining, reducing or withdrawing an activity through the contribution forgone, capital released and commitments that continue.
Explore this service
Investment and growth
Connect the demand case to the stock, capacity and service commitments needed at each stage of an expansion.
Explore this service
Transaction assessment
Examine the customer and operating changes an acquisition case requires, including those that depend on another party’s agreement.
Explore this service
What would customers buy at the revised price?
A price change can alter quantity, renewal and the work included. We examine the contribution the proposed terms require, including the capacity or purchasing commitments that remain if sales fall.
Read about pricing and contributionQuestions behind the figures
Four issues that can change a commercial assessment.
A price change and its volume assumption
Examine the customer response required for the proposed terms to improve contribution.
Explore the topicCapacity before demand
Connect each capacity commitment to the sales level it is intended to serve.
Explore the topicThe commercial case for ownership
Identify which customer or supplier changes the acquisition requires and who can agree them.
Explore the topicWhat withdrawal would release
Distinguish capital made available from costs and obligations the group would retain.
Explore the topicCommercial questions in context
The way a business sells, delivers and collects payment changes the assessment.
Explore business contextsB2B services
Compare the fee and included work with the people and capacity committed under the contract.
Recurring revenue
Assess a renewal-price proposal across the customers who renew, reduce their purchase or leave.
Manufacturing and distribution
Read price and quantity alongside minimum purchases, production capacity and stock commitments.
Investment portfolios
Identify what capital a portfolio choice releases and what the remaining group must still provide.
Which commitments follow from the demand case?
An expansion may need stock or support before demand reaches its planned level. The assessment connects each commitment to the customers and sales it is intended to serve, including the consequence of a slower start.
How an assessment worksWithin the assessment
What the terms permit
Read the conditions that govern a change in price, volume or scope.
What the proposal assumes
Follow the customer response into contribution and committed capacity.
What the next stage requires
Identify the demand needed to justify further stock, capacity or service.