Revomo Industry BriefBuilding Products & Construction Materials

Freight draws the map.
Your own channels compete inside it.

Revomo helps you set and change prices by zone, distance band and channel, with job-quote commitments, approvals and realized mill net tracked in one workflow.

For manufacturers selling through dealers, distributors and retail, from one plant and ERP to several

The problem

Freight sets the zone. Your channels set the gap.

A building products price is usually a delivered price for a place. Freight decides which plant can reach a job, so a lane that reprices cuts mill net without touching product cost. The same product often reaches the same contractor through a dealer and a retailer, at two of your own net prices. Revomo connects the zone price book, freight tables, multipliers, programs and open job quotes, each held by a different team, so you can decide which zone, band and channel moves, and when. The pattern holds from one ERP to several.

ERPOrders and invoices
Zone price bookPrices by geography
Freight tablesLanes and bands
Channel programsRebates, co-op, MDF
QuotesJob quotes, expiry
The decision
  1. Which zone moves?
  2. Through which channel?
  3. From what date?
  4. What mill net held?
Public evidence
  • Masco reports that home center retailers “are increasingly selling directly to professional contractors and installers,” a risk to its margins through dealers and wholesalers.1
  • Eagle Materials’ fiscal 2026 wallboard freight was $51.00 per thousand square feet, about 18% of the delivered price.2
Commercial Context

Commercial Context connects the records behind each pricing decision.

How Commercial Context works
Freight repricing example

A carrier lane reprices in one zone.
Two of your channels serve it.

A manufacturer sells into Zone 4 from two plants, through dealers and one national retail account. Its Zone 4 carrier rates rise from day 45. The retail contract requires 90 days’ notice of a list change, and 284 job quotes are already open.

$633K
Annual freight increase
$496K
Planned recovery, annual
78% of the increase
$464K
Realized run rate, annual
94% of plan at week 20

Illustrative example, not customer results. Recovery figures are annual; the realized figure is the annualized run rate 20 weeks after the effective date.

IllustrativeExample data
01SignalWhat changed?

The carrier rates refresh as a dataset. Product cost does not move, so a cost-driven price update would miss it.

Lane cost increase
+9.9%
lane-weighted, Zone 4
Units affected
160,000
a year, through two channels
Carrier rates change
Day 45
product cost unchanged

A freight event, measured by lane and channel before any price changes.

02ContextWhich shipments are affected?

Each shipped unit is linked to its plant, distance band, channel, programs and any open job quote.

46counties2plants2distance bands2channels284open job quotes

The same records carry through analysis, approval and measurement.

03AnalyzeWhere is mill net at risk?

Freight is 18.4% of invoiced revenue in this zone, so a lane move looks like discounting in a delivered average price. Run to mill net, the two separate.

Analysisdelivered price to mill net, by channelrefreshed
Zone 4, annual · delivered list to mill net and contribution
Delivered list$46.40M
Channel multipliers−$11.67M
Invoiced$34.73M
Rebates−$1.33M
Co-op & MDF−$0.81M
Freight−$6.37M
Mill net$26.22M
Cost of goods−$21.20M
Contribution$5.02M · 19.2% of mill net
38,400 units
Long-haul dealer bandMill net falls to $144.86, under the $145.00 floor. Doing nothing is already a policy breach.
24,700 units
Shipping on open job quotes$131,898 of the increase cannot be repriced until those quotes expire.
04DecideWhich response performs best?

Each response is projected with price sensitivity by channel and distance band. Who pays, and from when, matters as much as how much.

Predictive modelprice sensitivity by channel and bandtrained on 24 months
Raise the zone list for every channel and band.

$32K a year more than the band plan, but the list change triggers the retail notice clause, so year one is $14K lower, and short-haul buyers pay for lanes that barely moved.

Adjust delivered freight by distance band and channel, leave list unchanged.

Most first-year recovery, fewest dealer units lost, and the increase lands where the lanes moved, lifting the long-haul band over the floor.

Publish separate price books for the near and far halves of Zone 4.

Close to the list increase at run rate, lowest in year one, and a second price book in one market is a hard precedent to reverse.

A person chooses. The band plan charges long-haul dealer units more, short-haul less, and the retail account its own lane change. As a freight term, not a list change, it is not delayed by the notice clause.

View zone plan
Zone 4 planguardrails applied as rulesready for review
GoalRecover as much of the freight increase as the guardrails allow
Guardrails
Mill-net floor$145.00 per unit
Retail list changes90 days’ written notice
Open job quoteshonored to expiry
Dealer volume, overlap counties−1.0% (619 units)
Co-op and MDFfixed for the program year
Nearer plantup to 9,600 more long-haul units
Zone 4 plan · freight-band adjustmentscroll for all columns
SegmentUnits a yearMill net afterMoveRecoveryWhy this action
Dealer, short haul65,600$175.75+$3.05 freight$200KThe short-haul share of the lane move, without touching list.
Dealer, long haul38,400$151.06+$6.20 freight$215KThese lanes moved most. Back over the floor, net of 1,240 units of modelled volume loss.
Retail account56,000$156.76+$1.45 freight$81KMatches the 4.9% measured on that account’s own lanes. A freight term, so the list notice clause does not bind.
Open job quotes24,700quoted priceHold to expiryDeferredWithin the dealer rows. Held until each quote expires, delaying $111K of first-year recovery; the run rate is unchanged.
Total160,000 · all above $145.00$496KAnnual run rate, net of modelled volume loss
05Govern & executeWhat is approved and published?

The rules run against the plan before anyone signs. An open job quote outranks every other rule, because it is a price already promised.

  1. 01Commitments checkedOpen job quotes hold their price, and the rules are dry-run against the plan.
  2. 02Channel gap checkedYour dealer-to-retail net price gap widens 1.7 points in the long-haul band, under the 2.0-point routing threshold.
  3. 03Published with one datePrices publish on day 24, meeting the retail file’s 21-day lead time, and take effect with the carrier rates on day 45.
  1. DraftedDay 3
  2. ApprovedDay 14
  3. PublishedDay 24
  4. Live with the carrier ratesDay 45
  5. Last open job quote expiresWeek 16

Agents can analyze, draft and submit a change for approval. People approve and publish it, and the policy decides whether it is allowed.

View approval rules
RULESET · DELIVERED PRICINGOne policy across zones, bands and channels
RuleWhenThenApproval
DP·QUOTELine matches an open, unexpired job quotePrice at the quoted priceAuto
DP·NOTICEList change on an account with a notice provisionEffective date set when notice expiresAuto
DP·FLOORMill net below $145.00 per unitBlock; route to the zone pricing owner as an exceptionZone pricing owner
DP·CHANNELDealer-to-retail net price gap in an overlap county widens more than 2.0 pointsRoute with the analysis attachedChannel director
DP·FREIGHTA band’s lane cost moves 3.0% or moreDraft a delivered-freight adjustment for that bandAuto
DP·ZONENew price book for part of a zoneHold for approvalPricing council
When rules conflict, this order wins
  1. Open job quote
  2. Notice provision
  3. Mill-net floor
  4. Channel gap
  5. Freight adjustment
  6. Zone list

Each zone owner approves its own exceptions under one delivered-pricing policy.

How approvals and publishing work
06MeasureDid recovery hold?

At week 20, with the last open job quote expired, realized recovery is compared with the plan.

IllustrativeOutcome of the example
Annualized run rate against plan, week 20
$464K realized of $496K planned · 94%

Volume fell as modelled, so the shortfall is price. The $32K run-rate gap has two continuing causes: after a plant code change, 6,300 long-haul units a year are tagged short-haul and invoiced $3.15 less ($20K), and expired job quotes are re-issued at the old price, 1,950 units a year at $6.20 ($12K). The $111K that open quotes deferred in year one was one-off and is not part of the gap.

Next: correct the band on the affected orders, and route re-issued quotes through the job-quote rule so they price at the current adjustment.

Freight repricing exampleExample data
Other decisions

The same approach supports other pricing decisions.

  • Mill-net leakage

    Where do multipliers, programs and freight erode mill net, by zone and channel?

    Analytics & Insights builds the delivered-price-to-mill-net bridge on your own invoices, with rebates, co-op, MDF and freight as named steps, wherever your accounts record them.

    Margin leakage & price realization
  • Uneven input costs

    Which products and zones should a cost increase move, when steel, aluminum and gypsum move differently?

    Price Management publishes effective-dated changes by product, zone and channel, with notice periods applied as rules, so each increase reaches each channel on a date its contract allows.

    Price increases that stick
  • Job quotes

    Which job quotes are still commitments, and which have lapsed?

    Quoting & Deal Pricing prices a job against the current zone book and floor. In the example, open quotes are held by a pricing rule on quote records, and expired ones lose their protection.

    Quoting & deal price guidance
  • Channel programs

    Early Access

    What does each channel earn once rebates, co-op and MDF settle?

    Rebates & Incentives, in early access, holds accruals, claims and settlements against the transactions they belong to. In the example, program money is a fixed term in the mill-net bridge instead.

    Rebates & incentive programs

What Revomo provides

Connect

Zone price books, freight lanes, plants, channel terms, programs, quotes and invoices, linked through shared definitions so every figure traces to its source.

Decide and act

Analyze mill net, model price sensitivity by channel and band, compare responses, route exceptions for approval and publish effective-dated changes.

Extend where needed

Quoting, agreement management and incentive programs, added for specific workflows. Quoting is generally available; the other two are not yet.

Revomo works alongside your ERP, which keeps pricing transactions. Connection and publishing methods are scoped to your systems during activation.

Bring one commercial decision.
We will run it end to end.

Bring a recent freight or cost increase, a zone that no longer fits its plants, or a channel-gap question, and the people who own it. We will map how the decision works today, from where the change arrives to how prices are approved and mill net is checked, then show how Revomo could run it, on the example above or a scoped slice of your data. No data is required for the first conversation.

Research basis2 primary sources · public company filings

These sources support the description of the industry problem. They are not evidence of Revomo results, and every figure in the example is illustrative. Eagle Materials’ freight share is a heavy-materials case, shown as evidence of the mechanism, not as a benchmark; the percentage is our arithmetic from its disclosed figures. Coverage: construction materials, architectural products and hardware, plumbing, bath and fixtures, and home improvement products.

  1. 1Masco Corporation. Annual Report on Form 10-K for the year ended December 31, 2025 10 Feb 2026
  2. 2Eagle Materials Inc. Annual Report on Form 10-K for the fiscal year ended March 31, 2026 19 May 2026
Plate IND · Series 2026 · Building Products & Construction Materials · RV·2026·IND·11
Plate B2 · Series 2026