Separate reference-price movement from discounting, rebates, concessions, variable cost, and volume without letting an arbitrary waterfall sequence determine the attribution.
About this interactive
The analysis compares the same unit basis across two periods and reconciles total contribution movement using sequence-neutral attribution. Every changed driver is introduced in every possible ordering and its marginal effect is averaged, eliminating dependence on a single bridge sequence. Optional actual realized price can be entered when the listed commercial mechanisms do not fully explain price received; the difference remains visible as unclassified price movement. The recovery thresholds show the discount or reference-price level required to preserve prior-period unit or total contribution under the current Period B leakage, cost, and volume position. No external pricing benchmark is imposed. For more information, visit our Strategic Revenue Management practice.
Period comparison
Use the same product, service, contract, transaction, seat, room night, or other consistent unit basis in both periods.
Sequence-neutral attribution
Each driver’s effect is averaged across every possible ordering of the changed inputs. The bridge therefore reconciles exactly without assigning interaction effects according to a chosen sequence.
Economic attribution
Commercial deductions remain separate from variable cost and volume, while optional actual-price reconciliation remains visible rather than being forced into another mechanism.
Recovery thresholds
The thresholds hold Period B rebates, concessions, variable cost, reconciliation adjustment, and volume constant while solving for the discount or reference-price level required to preserve the Period A economics.
What the interactive shows
PRICING LEAKAGE BRIDGE: ILLUSTRATIVE DEFAULT RECORD INPUTS Period A reference price: $100.00 Period B reference price: $104.00 Period A volume: 50,000 Period B volume: 48,000 Period A discount rate: 8.0% Period B discount rate: 11.0% Period A rebates and credits per unit: $2.00 Period B rebates and credits per unit: $3.00 Period A other concessions per unit: $1.00 Period B other concessions per unit: $1.50 Period A variable cost per unit: $61.00 Period B variable cost per unit: $62.50 Period A actual realized price reconciliation: Not entered Period B actual realized price reconciliation: Not entered COMPUTED POSITION Period A realized price: $89.00 Period B realized price: $88.06 Period A unit contribution: $28.00 Period B unit contribution: $25.56 Period A total contribution: $1,400,000 Period B total contribution: $1,226,880 Total contribution movement: −$173,120 SEQUENCE-NEUTRAL ATTRIBUTION Reference price effect: +$177,400 Discount realization effect: −$149,920 Rebates and credits effect: −$49,000 Other concessions effect: −$24,500 Variable cost effect: −$73,500 Volume effect: −$53,600 Attributed total: −$173,120 LEAKAGE POSITION Period A commercial deductions per unit: $11.00 Period B commercial deductions per unit: $15.94 Increase in commercial deductions per unit: $4.94 Period B commercial leakage at Period B volume: $765,120 Commercial leakage share of all negative contribution movement: 63.7% Commercial leakage absorbed 123.5% of the $4.00 reference-price increase. DECISION THRESHOLDS Maximum Period B discount preserving Period A unit contribution: 8.65% Gap from entered Period B discount: +2.35 percentage points Maximum Period B discount preserving Period A total contribution at Period B volume: 7.53% Gap from entered Period B discount: +3.47 percentage points Required Period B reference price to preserve Period A unit contribution at current leakage and cost: $106.74 Required Period B reference price to preserve Period A total contribution at Period B volume: $108.05 Reference-price increase still required from the entered Period B reference price to preserve Period A total contribution: 3.90% FINDING Reference price increased by $4.00 per unit, while commercial deductions increased by $4.94 per unit. Commercial leakage therefore absorbed 123.5% of the reference-price increase and realized price declined from $89.00 to $88.06. The sequence-neutral bridge attributes +$177,400 to reference price, while discount realization, rebates, and concessions remove $223,420. Variable cost removes another $73,500 and volume removes $53,600, leaving total contribution $173,120 below Period A. At the current rebate, concession, cost, and volume position, Period B discount would need to be no higher than 7.53% to preserve Period A total contribution, compared with the entered 11.0%. METHOD STATUS Management-entered period assumptions. Realized price equals reference price less percentage discount, rebates and credits, and concessions, plus any entered reconciliation difference between calculated and actual realized price. Unit contribution equals realized price less variable cost; total contribution equals unit contribution multiplied by volume. Driver attribution is sequence-neutral: each changed driver is introduced in every possible ordering and its marginal contribution effect is averaged across those orderings. This removes dependence on a single arbitrary waterfall sequence and reconciles exactly to the observed contribution movement. Decision thresholds hold the other Period B commercial deductions, variable cost, reconciliation adjustment, and volume constant while solving for the discount rate or reference price required to preserve the specified Period A contribution level. No external pricing benchmark or hidden weighting is used.
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