The decomposition used in this tool works like this: first the change in total units is multiplied by the period-1 average price (volume), then the reshuffling of units across products is measured at period-1 prices (mix), and last the price difference on the same units is calculated (price). The three effects add up to the revenue change exactly. The decomposition depends on the order: change the order and the total stays the same, but the split between effects changes.

In this order the price effect is measured with period-2 units. The cross term created by price and units changing together is booked to price. An order that measures price with period-1 units leaves that term to volume and mix. Either route can be used; say which one you used in the meeting.

The mix effect appears when the share of units moves between products. If more expensive products sell in place of cheaper ones, revenue rises with no change in total units or any price. When mix is near zero, either the shares of units barely moved, or the shift did not change the average price. With a single product, mix is always zero.

To enter a new product, put 0 in its period-1 units. Its period-1 price was never observed, so the tool uses its period-2 price; the product's revenue is booked to volume and mix, not to price. For a product you dropped during the period, period-2 units are 0.

Figures are nominal; there is no inflation adjustment. In a high-inflation economy, a large part of the price effect may simply be the general rise in prices. To see your revenue growth stripped of inflation, the Real Growth Calculator and the Real Growth guide sit next to this page. The decomposition also does not say why: units falling after a price increase may be the cost of that increase, but you need customer and churn data to find out.