James,
Thanks for your comments.
For about 5 years, I sorta did this stuff with real
consumer products. Most importantly with both
NEW and existing products.
The way it works, as you might imagine, is Marketing,
Sales, and Finance getting together with their inputs
and out pops a P&L. Senior Mgt. modifies, the loop
repeats, and finally a Budget P&L results.
Well, buddy, we get to wear all 3 hats.
For right now, I am less concerned about the #'s and
more concerned about accurately displaying ALL the
various markets/prices that Synvisc will be in.
IOW, the act of showing Synvisc sold in England
forces you to address the #'s about it. In addition,
it raises the nuances of the fact that with distributors
BIOX gets x% of retail price, but, for example,
in England/China they get 100% of retail price.
I know that of over-riding concern is the rationale for
the AHP USA #'s.
Version 4 shows this rationale.
James, I am NOT trying to cast this stuff in stone.
(That would belie my own experience-we retrended products
every month!)
But the beauty of the deal is, as reasonable changes come in
I plug the updates to my Excel worksheet and out pops
a Revision.
Hopefully, then, we can all see where this boat is
taking us.
Finally, I have built some *hard spots* into this P&L.
That is, expense is deliberately over-stated.
e.g. R&D and England/China SG&A
This is to compensate for errors going the other way
that are not visible at this time.
For example, we won't have a good handle on Synvisc
GM % until after the 4th qtr. - in my opinion.
The way I want to play this out is as follows:
a- Someone wants to change some value on the P&L for
reason x.
If I agree, I change the P&L.
If I disagree, they can easily lift the current P&L
and adjust it accordingly, and redisplay to everyone.
Have a great week!
Regards,
John McCarthy |
