Pricing Leakage Bridge

The Pricing Leakage Bridge takes two-period inputs across reference price, discount rate, rebates, concessions, and variable cost, then decomposes the contribution movement into its commercial and structural components. The output identifies which pricing mechanism changed between periods and quantifies its effect on total contribution.

Standard price waterfalls show where deductions occur within a single period. This diagnostic shows what changed between periods and separates commercial realization from cost movement and volume, giving finance and pricing leaders a precise view of where contribution deteriorated and why.

See what changed in realized pricing between two periods and which commercial mechanisms changed contribution.

About this diagnostic

Compare the same product, service, contract, transaction, seat, room night, or other consistent unit across two periods. The bridge separates reference price movement, discount realization, rebates and credits, concessions, variable cost, and volume. For more information, visit our Strategic Revenue Management practice.

Compare the two periods

Use the − and + controls or select a value to enter an exact amount. Dollar deductions are entered per unit.

Period A

Period B

Reference price Per unit

Volume Same unit basis in both periods

Discount rate Average reduction from reference price

Rebates & credits Average per unit

Other concessions Average per unit

Variable cost Per unit

+ Reconcile to actual realized price

Optional. Enter actual realized price when the mechanisms above do not fully explain the price received. Any difference is shown as unclassified price movement.

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