Revenues management key items.
The business type can make it more or less difficult to analyse (so some of the below items may be more or less relevant or important).
The key variables that are to be considered are both internal:
- The historic evolution of revenue for each of the product or services in your catalogue (Where it is straight forward for standard products / services it may be more cumbersome for customised and ad hoc product or services). Over the revenues figures both constituent needs to be understand:
o Catalogue prices and discounts versus ad-hoc pricing,
- For international and global companies, currency effect,
- By customer or customer types,
And external (business and competitive intelligence)
- Market type (emerging, developing or mature) and growth rate,
- Entry/exit barriers from a customer perspective,
- Company (in) dependencies’ (contractors versus subcontractors, entry and exit barriers from competitors’ perspective).
Competitiveness shall be looked at from a company and from each product (product line) perspective.
More in the following article initially published in FP&A trend https://fpa-trends.com/article/explaining-reporting-and-forecasting-revenues-evolutions