Value Packs / Manufacturing / Sales Profitability & Margin Guardian / Wisdom
Which customer tiers are earning less margin than planned this month, and how much revenue is behind each?
NWhere the margin sits against plan
IN A NUTSHELL
Three tiers are below plan. Export distributors are furthest — 18.6% contribution margin against a planned 27.4%, an 8.8-point gap — on $62.4M of revenue. National accounts are 2.9 points under on $48.1M and regional wholesale 1.4 points under on $31.6M. Direct industrial and aftermarket are both above plan. Export distributors are the largest revenue tier on the page and the widest gap at the same time, which is $5.49M of margin.
Contribution margin against plan, by customer tier, this month
Each tier is read against its own plan — aftermarket is planned at 39.9% and export distributors at 27.4%, so the raw margins are not comparable between tiers.
National accounts and regional wholesale are $1.39M and $0.44M below plan on $79.7M of revenue between them. Export distributors are $5.49M below on $62.4M, which is three times both of them together.
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How has contribution margin on export distributors moved month by month against plan?
NTen months on plan, then November
IN A NUTSHELL
Export distributors sat inside the expected range every month from January to October, moving between 26.5% and 28.1%. November is the first month below it — 18.6% against a planned 27.4%. The fall from October to November is 8.3 points, against a largest ordinary month-to-month move of 1.6. On $62.4M of revenue that one month is $5.49M of margin.
Contribution margin against the range expected of it · export distributors
The range is rebuilt each month from that month’s own history — the gap between the line and the bottom of it is how far below expectation the tier is running.
The ten months to October sit either side of what was expected by at most 0.9 points, three of them above it. November is 8.6 below — nine times the furthest any earlier month strayed, and the only one outside.
Wisdom noticed
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Is it what we charge, or what it costs us to make?
NMostly what we charge
IN A NUTSHELL
$3.42M of the $5.49M is price — 62% of it. The average unit sold for $15.14 against a planned $15.97, which is 5.2% less, across 4.12M units. Cost is the other $2.07M: material cost per unit rose 6.6% and the cost of running the line rose 5.0%. So roughly two dollars in every three came off the price and one came out of cost.
The $5.49M of margin below plan, split three ways
The three pieces sum to the whole gap — each is a per-unit difference against plan multiplied by the 4.12M units sold.
Price is 83 cents a unit and the two cost lines are 50 cents between them. Material is the larger of the two costs at 37 cents, and it has moved more in percentage terms than price has.
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Put the monthly margin report together.
NThe report lists every product and customer tier earning less margin than planned, with the units sold, what each unit sold for, what its materials cost and what it cost to run. One row per product and tier, so the price lines can be read next to the cost lines.
margin_against_plan_november.xlsx
One row per product and customer tier, sorted by margin below plan. Five tiers, with the eleven months behind each row.
56 KB · 128 rows · 5 tiers · 11 months
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