Definition
Analyze price, customer value and cost at transaction, product/market and industry levels to identify and validate margin-improvement opportunities.
In detail
Use the pocket-margin waterfall to examine discounts, rebates and service cost, then use buying factors, competitive positioning and attractiveness to develop actions. Validate results with consistent customers, products, periods and currencies. Analysis proceeds through data, hypotheses, priorities and deep dives to strategy and implementation. Track opportunity estimates, agreements, effectiveness and actual impact separately so volume or mix changes are not counted as price improvement. This entry's pocket-margin waterfall is the same chart as the glossary's "transactional price waterfall" entry (list price stepped down through deductions to net transaction price); this entry emphasizes turning it into pricing actions.
Example in practice
Teaching scenario: two customers have similar revenue but different installation and field-service costs. The team analyzes full contribution by account, then tests service tiers or revised terms while tracking customer outcomes and actual margin.