hello control airs how are you doing welcome to a new video of under control in comm in the previous post of my blog I explained how to build a sales bridge or also call volume mix price analysis with a target of analyzing the gap between budget and actual sales of our company and we learn how to calculate the three effects so if you haven't read it yet I recommend you to have a look because you can also download an excel file with a sales pitch example including formulas but today we are going to focus on understanding a little bit better every effect as you can see in the screen we have an excel file with a list of references and sales information for both budget and actual figures besides we have ADD formulated columns in order to get the volume mix and price effect for each reference what are we going to do now we are going to change some values in order to see what is the impact of every change as a starting point we have an actual values which are exactly the same the budget therefore we have no sales by ratio we can start with maybe the easiest one the price effect this effect is calculated as the difference between actual and budget price multiplied by the actual units so if we take one of the references for example tea red and we increase the actual price up to 210 euros per reference we get a positive deviation of 300 euros which is the result of multiplying 10 euros of higher actual price by the unit salt 30 obviously if we decrease the sales price in another reference for example tea green we will get a negative price effect this is pretty simple now we are going to analyze the impact of a change in the volume but first of all we are going to restore the prices to an initial point in order to remove the price effect and focus only on the volume change a change in volume may have impact not only in the volume effect but also in the mix for example if we put five additional units in tourette we got a positive deviation due to a positive volume effect but also a positive mix effect while what happen if now I put five unit less integral as you can see my deviation is still positive however I only have mix effect why don't I have a volume effect anymore because the total actual units is equal to the total budget units and why if we are selling the same volume of references we have a positive deviation due to the mix effect we are selling the same volume in total this is true but the mix is different and in this case the mix effect is positive because we are selling more units from the most expensive reference however if I do it in the other way around and I put five units less into it into red sorry but five units more integral the total result is negative as the five triggering units are solved with a cheaper price than tea red product and in which cases a change of volume will not bring a mix effect well when the mix or in other words the percentage of every reference over the total don't change for example if we duplicate the volume for every reference we'll have the volume impact but no mix impact here we have okay guys I hope you liked the video this is so thank you very much and I see you in the next video bye