Channel Pricing: When Revenue Mix Changes Margin
Two channels can deliver comparable revenue while producing very different financial results. Josh examines how commissions, acquisition costs, customer migration, pricing authority and service requirements influence the contribution retained from each sale. The discussion follows demand as it moves between direct sales, distributors, marketplaces and other partners, including situations where channel growth merely redirects existing customers. Price parity, promotional funding and available capacity introduce further complications when the same advertised rate carries different costs. The episode explores how changes in revenue mix can weaken margin even when total demand and average selling price appear stable.
