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PROFIT IMPACT

Price has more profit leverage than volume or cost

Profit impact varies by EBIT margin:

1

A 1% price increase...

grows EBIT

 by 20%

2

PPT profit levers low vertical.jpg

Revenue

Fixed Costs

Variable

Costs

EBIT

$100

$6

$5

$75

$20

$101

3

Improving each lever by 1% grows EBIT by:

Price

Variable
costs

Volume

Fixed

costs

PPT profit levers low horizontal_edited.

20%

15%

5%

4%

"But what about lost volume?"

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