If you're in B2B pricing or sales ops and want to stop leaving money on the table, price waterfall reports are your friend. But let's be honest—most people either don't use them at all, or they drown in numbers and miss the point. This guide is for folks who want to actually do something with price waterfalls in Vendavo: how to build them, what to look for, and how to not waste your time on stuff that doesn't move the needle.
What’s a Price Waterfall Report, Really?
Before you fire up Vendavo, let's make sure we're on the same page. A price waterfall report breaks down all the little (and not-so-little) steps between your product’s list price and what you actually take home at the end (pocket margin). It’s a way to see, line by line, where money leaks out—from discounts and rebates to freight and unexpected costs.
Why care? Because you can’t fix what you can’t see. If you want real revenue growth, you need to know where you’re bleeding margin.
In short: Waterfall reports show you how much you’re giving away and to whom—so you can make smarter decisions.
Step 1: Get Your Data in Shape
A price waterfall is only as good as the data behind it. This part isn’t glamorous, but bad data will make any report useless (or worse—misleading).
Here’s what you need: - List prices for each product. - Transaction-level sales data (actual sold price, units, customer, date). - Discounts and rebates (all types: off-invoice, end-of-quarter deals, loyalty programs, etc.). - Freight, logistics, and additional costs. - Any customer-specific terms or side deals.
Pro tip: Don’t trust what’s in your head or on an old spreadsheet. Pull fresh data from your ERP or CRM. If you can’t get clean, detailed data, fix that before you bother with Vendavo. Otherwise, you’re building a house on sand.
Step 2: Set Up Your Price Waterfall in Vendavo
Vendavo has different modules and versions, but the workflow is pretty similar across the board. Here’s how to get started:
2.1. Log in and Find the Price Waterfall Tool
- Go to your Vendavo dashboard.
- Look for “Price Waterfall” or “Margin Bridge” (naming depends on your setup).
- If you don’t see it, you might lack permissions—ask your admin.
2.2. Define the Waterfall Steps
Vendavo usually gives you a default waterfall. Don’t just accept it blindly.
Typical steps include: 1. List Price 2. Invoice Price (after standard discounts) 3. Pocket Price (after rebates, promotions) 4. Pocket Margin (after costs: freight, service, etc.)
But you should customize steps to fit your business. For example: - Add steps for customer-specific rebates if those are big. - Include freight as its own step if it’s a margin killer. - Skip steps that don’t apply—don’t add noise.
To customize: - Go to “Configure Waterfall” or similar. - Add/remove steps and label them clearly. - Map each step to the right data field from your system.
2.3. Load and Validate Data
- Upload or connect your cleaned data.
- Double-check that each field (discounts, costs, etc.) maps to the right waterfall step.
- Run a sample report for a single product or customer first.
- Look for weird numbers or blanks. If anything seems off, stop and fix the data before running full reports.
Pro tip: If the numbers don’t add up, don’t fudge them—chase down the cause. Bad mapping is a common mistake.
Step 3: Generate the Report
Now you’re ready to run the price waterfall.
3.1. Choose Your Scope
Decide what view will actually help you: - By Customer: See who’s getting the deepest discounts or most rebates. - By Product: Spot which products are leaking margin. - By Region or Channel: Useful if you suspect certain markets are problem areas.
Don’t try to look at everything at once. Focus on a pain point.
3.2. Run the Report
- Select your filters (time period, customer, product, etc.).
- Hit “Generate” or “Refresh.”
- Wait for the report to build. If it takes forever, your dataset may be too big—narrow your scope.
3.3. Export or Share
- Download as Excel, PDF, or whatever format works for your team.
- If you need to present, use Vendavo’s built-in visuals—but don’t just paste screenshots into slides without understanding them.
Step 4: Actually Read the Waterfall (Not Just Look at the Chart)
This is where most people mess up. They see the steps, nod along, and move on. Don’t do that.
4.1. What Matters
- Biggest Drops: Where is the largest dollar or percentage drop from one step to the next? That’s your first suspect.
- Patterns: Are some customers always getting bigger discounts? Are certain products always in the red?
- Surprises: Any “step” that’s bigger or smaller than expected? Dig in.
4.2. What Doesn’t Matter (Most of the Time)
- Tiny steps—don’t sweat a 0.5% change unless you sell at huge volumes.
- Steps that are “nice to know” but never actionable (like a minor admin fee).
- Chart color schemes. Focus on numbers, not pretty graphs.
Pro tip: If you can’t explain a big drop to your boss in one sentence, you probably don’t understand it yet.
Step 5: Turn Insights into Actions
A nice-looking waterfall means nothing if it doesn’t drive change. Here’s how to make it count:
5.1. Prioritize
- Fix the biggest leaks first. Don’t get distracted trying to optimize small stuff.
- Ask, “Is this loss a necessary evil, or can it be fixed?” Sometimes rebates are strategic. Other times, they’re just lazy old habits.
5.2. Test Changes
- Try reducing one type of discount for a customer segment and see what happens.
- Pilot a change for one product line before rolling out everywhere.
5.3. Rinse and Repeat
- Refresh your data and waterfalls regularly (quarterly, at least). Circumstances change fast.
- Don’t get stuck in analysis—move quickly from insight to action.
Real-World Advice: What Works, What Doesn’t
- What works: Focusing on the top 1-2 margin leaks. Simple, targeted changes (like cutting a redundant rebate) almost always deliver more than big, complex pricing overhauls.
- What doesn’t: Spamming your team with waterfall reports every week. People tune out. Use them as a targeted tool, not a ritual.
- Ignore: Waterfall steps that are too granular for your business. If no one can act on “admin fee variance,” leave it out.
Remember: Most margin leaks come from just a couple of sources. Don’t overcomplicate it.
Keep It Simple—And Keep Going
Price waterfalls in Vendavo aren’t magic. But if you use them to spot where your real money’s leaking out—and actually do something about it—you’ll see results. Start small, focus on what you can fix, and revisit regularly. The goal isn’t a perfect chart; it’s more money in your pocket. If something doesn’t make sense, question it. That’s how you find the good stuff.