A change in price affects more than revenue. Contract terms, customer volumes and the costs of delivery all influence the result. An investment or acquisition brings its own questions about timing and the capital required.
We put those terms and expected costs alongside the investment required, so each option can be compared over the same period.
About CrownpointDiscounts, rebates and contract terms can change the revenue from an account. We examine those terms alongside the cost of supplying it, then consider how a change in price or volume would affect contribution.
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Discounts, rebates and contract terms can change the revenue from an account. We examine those terms alongside the cost of supplying it, then consider how a change in price or volume would affect contribution.
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We compare contribution and capital requirements across the activities being considered, using a consistent period and scope.
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We review the assumptions about timing, demand, working capital and the resources needed to operate at the proposed scale.
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We examine the commercial assumptions, the proposed operating changes and the timing of their costs.
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Rebates, changes in scope and delivery arrangements can affect the return from an account. The comparison needs to include what the contract provides for and the work required to supply it.
Read about pricing and contributionFour issues that can change a commercial assessment.
Compare the price a customer actually pays with the cost of fulfilling the contract.
Explore the topicExamine when an expansion needs funding and how a delay in sales changes the requirement.
Explore the topicPut proposed changes and their timing alongside the assumptions behind an acquisition.
Explore the topicCompare contribution and capital requirements across activities using the same period and scope.
Explore the topicThe way a business sells, delivers and collects payment changes the assessment.
Explore business contextsContract length, scope changes and the time required to deliver an account affect contribution.
Renewal terms and the cost of supplying a service matter alongside headline revenue.
Volume, purchasing terms and available capacity affect the cost of an order.
Compare earnings, working capital and the investment required for the next stage.
A signed commitment and a management estimate have different supporting evidence. We identify those conditions, costs that remain and the timing of cash requirements before comparing the options.
How an assessment worksRead the calculations alongside the records that support them.
Use the same scope and period when comparing alternatives.
Consider the resources committed before revenue arrives.
