Prices as Quoted Chart
NOTE: This article refers to how to interpret the Prices as Quoted chart. To revert back to the previous chart, select the "Waterfall" link to the bottom right of the chart.
This Prices as Quoted chart appears when there is an Acquisition Efficiency in a model for either the offering or competitor. Recall that an Acquisition Efficiency for your offering exists when a unit of your Offering economically performs better than a comparable unit of a Competitor and when the Customer chooses to realize the benefit of this performance by purchasing less of your Offering.
A common example used in LeveragePoint trainings refers to a scenario where two towels are being sold: a Conventional Towel and a Super Towel. In this scenario, the Super Towel is more absorbent, so that for every spill (our chosen customer unit), you need 3 Conventional Towels but only 1 Super Towel. Below is how you would set up this particular scenario in LeveragePoint.
If each towel was sold at $0.02 per towel, then we'd understand that for every Super Towel purchased at $0.02, the spend of Conventional Towel needed to achieve the equivalent spill cleaning outcomes is $0.06 (3 purchases of $0.02 towels).
The Prices as Quoted chart shows this outcome below.
The first bar in the stacked bar charts show the prices as quoted (in this case $0.02 per towel for both the Offering and the Competitor). The additional spend needed to achieve the same performance outcome is stacked on top of the Competitor's price unit, and the Total Spend (price unit plus additional spend) is on top of the stacked bar.
In a case where the competitor has the Acquisition Efficiency, the additional spend will appear above the Offering unit.
Note that the first bar in the stacked bar chart will always show the prices in as quoted in the competitor and offering price unit. The additional spend is calculated based on their economic effectiveness relative to each other, not based on how many total are needed by the customer. For example, in the scenario above, if the customer unit were Year, and the price units conversions indicated that the customer would require 300,000 Conventional Towels and 100,000 Super Towels per year, the Prices as Quoted chart would not change.