# Product mix shift: pricing metric definition, thresholds and response

> Each family’s share of revenue against the prior period, and the margin effect of the shift.

Source: https://revomo.ai/marketplace/metrics/product-mix/

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- [Margin Leakage](https://revomo.ai/marketplace/collections/margin-leakage/)
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- [Market Response](https://revomo.ai/marketplace/collections/market-response/)

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- [Industrial distribution](https://revomo.ai/marketplace/templates/?industry=distribution)
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- [Chemicals & materials](https://revomo.ai/marketplace/templates/?industry=chemicals)

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- Metric

## Product mix shift

Each family’s share of revenue against the prior period, and the margin effect of the shift.
[See Product mix shift in Revomo →](https://revomo.ai/contact/?source=marketplace&type=metric&artifact=product-mix&name=Product+mix+shift)

### Why it matters

Mix decides margin as surely as price. A shift toward lower-margin families can meet the revenue plan and miss the margin plan at the same time.

### Act when

A shift of x points or more in key lines

Thresholds are set per business; the ones written as x and y are placeholders your team fills in.

### What it may signal

Preference drift, obsolete SKUs.

### What to do

The templates that respond when this metric moves.
- [Mix and volume plan by channel](https://revomo.ai/marketplace/templates/mix-volume-plan/)*template*
- [Product hierarchy and velocity tiers](https://revomo.ai/marketplace/templates/product-hierarchy/)*template*

### How it’s defined

Formula
`sum('Net revenue', group_by='Family') / sum('Net revenue')`

Required context
Invoice lines

Dimensions
Family, Channel

Cadence
Reviewed monthly

Lineage
Every value traces to the invoice line or governing record it was computed from.

Use in
**Alerts**: an agent watches it against a rule and alerts you when it trips. **Against plan**: tracked against the target, with the bridge that says what moved it.

### Relevant industries

All industries

Type
Metric

Category
[Revenue & Margin Performance](https://revomo.ai/marketplace/metrics/?category=performance)

Use in
Alerts · Against plan

Cadence
Monthly

Industries
All industries

[See this in Revomo →](https://revomo.ai/contact/?source=marketplace&type=metric&artifact=product-mix&name=Product+mix+shift) Defined, monitored and connected to action, on representative data or your own.

### Related metrics

- Revenue & Margin Performance #### [Margin, unit and percent](https://revomo.ai/marketplace/metrics/unit-margin/) Pocket margin per unit and as a share of pocket price, by SKU and account. **Act when**A drop over x points, or a single cost driver up over y% Alerts · Against plan · After a decision
- Revenue & Margin Performance #### [Revenue against plan](https://revomo.ai/marketplace/metrics/revenue-vs-plan/) Net revenue against the plan, by channel and family, with the bridge that says what moved it. **Act when**A swing over x% against plan Against plan · Alerts
- Revenue & Margin Performance #### [Sales growth](https://revomo.ai/marketplace/metrics/sales-growth/) Revenue against the same period last year, by account and family. **Act when**Up or down over x% Against plan · Alerts

### See Product mix shift on your commercial data.

We will show how Revomo defines, monitors and connects this metric to commercial action, using representative data or your own.
[See this on your commercial data →](https://revomo.ai/contact/?source=marketplace&type=metric&artifact=product-mix&name=Product+mix+shift)[All metrics](https://revomo.ai/marketplace/metrics/)