# Pricing & Revenue Management for Building Products & Construction Materials > Revomo helps building products manufacturers price by zone, distance band and channel, with job-quote commitments, approvals and realized mill net tracked in one workflow. Source: https://revomo.ai/industries/building-products-construction-materials/ --- Revomo Industry Brief Building 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. Explore a freight repricing example[Request a walkthrough](https://revomo.ai/contact/) For manufacturers selling through dealers, distributors and retail, from one plant and ERP to several How it works - **Freight and cost** change by lane, plant and zone - **Zone prices** change by band and channel, inside open job quotes - **Realized mill net** is measured against the approved plan - The problem - Repricing example - Other decisions - Start here 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. **ERP** Orders and invoices **Zone price book** Prices by geography **Freight tables** Lanes and bands **Channel programs** Rebates, co-op, MDF **Quotes** Job quotes, expiry The decision - Which zone moves? - Through which channel? - From what date? - 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](https://revomo.ai/commercial-context/) 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. Illustrative Example data - 01 Signal What changed? - 02 Context Which shipments are affected? - 03 Analyze Where is mill net at risk? - 04 Decide Which response performs best? - 05 Govern & Execute What is approved and published? - 06 Measure Did recovery hold? 01 Signal What 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. 02 Context Which shipments are affected? Each shipped unit is linked to its plant, distance band, channel, programs and any open job quote. **46**counties **2**plants **2**distance bands **2**channels **284**open job quotes The same records carry through analysis, approval and measurement. 03 Analyze Where 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. Analysis delivered price to mill net, by channel *refreshed* 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 band** Mill 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. 04 Decide Which 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 model price sensitivity by channel and band *trained on 24 months* Zone list +2.0% Annual recovery **$528K** First-year recovery **$371K** Dealer units lost **3,600** 83% of exposure covered Freight-band adjustment Recommended Annual recovery **$496K** First-year recovery **$385K** Dealer units lost **1,240** 78% of exposure covered Split the zone in two Annual recovery **$523K** First-year recovery **$348K** Dealer units lost **4,900** 83% of exposure covered 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 plan guardrails applied as rules *ready for review* Goal **Recover as much of the freight increase as the guardrails allow** Guardrails Mill-net floor **$145.00 per unit** Retail list changes **90 days’ written notice** Open job quotes **honored to expiry** Dealer volume, overlap counties **−1.0% (619 units)** Co-op and MDF **fixed for the program year** Nearer plant **up to 9,600 more long-haul units** Zone 4 plan · freight-band adjustment scroll for all columns Segment | Units a year | Mill net after | Move | Recovery | Why this action | Dealer, short haul | 65,600 | $175.75 | +$3.05 freight | $200K | The short-haul share of the lane move, without touching list. | Dealer, long haul | 38,400 | $151.06 | +$6.20 freight | $215K | These lanes moved most. Back over the floor, net of 1,240 units of modelled volume loss. | Retail account | 56,000 | $156.76 | +$1.45 freight | $81K | Matches the 4.9% measured on that account’s own lanes. A freight term, so the list notice clause does not bind. | Open job quotes | 24,700 | quoted price | Hold to expiry | Deferred | Within the dealer rows. Held until each quote expires, delaying $111K of first-year recovery; the run rate is unchanged. | Total | 160,000 · all above $145.00 | | $496K | Annual run rate, net of modelled volume loss | 05 Govern & execute What 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. - 01 **Commitments checked** Open job quotes hold their price, and the rules are dry-run against the plan. - 02 **Channel gap checked** Your dealer-to-retail net price gap widens 1.7 points in the long-haul band, under the 2.0-point routing threshold. - 03 **Published with one date** Prices publish on day 24, meeting the retail file’s 21-day lead time, and take effect with the carrier rates on day 45. - **Drafted** Day 3 - **Approved** Day 14 - **Published** Day 24 - **Live with the carrier rates** Day 45 - **Last open job quote expires** Week 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 PRICING One policy across zones, bands and channels Rule | When | Then | Approval | `DP·QUOTE` | Line matches an open, unexpired job quote | Price at the quoted price | Auto | `DP·NOTICE` | List change on an account with a notice provision | Effective date set when notice expires | Auto | `DP·FLOOR` | Mill net below $145.00 per unit | Block; route to the zone pricing owner as an exception | Zone pricing owner | `DP·CHANNEL` | Dealer-to-retail net price gap in an overlap county widens more than 2.0 points | Route with the analysis attached | Channel director | `DP·FREIGHT` | A band’s lane cost moves 3.0% or more | Draft a delivered-freight adjustment for that band | Auto | `DP·ZONE` | New price book for part of a zone | Hold for approval | Pricing council | When rules conflict, this order wins - Open job quote - Notice provision - Mill-net floor - Channel gap - Freight adjustment - Zone list Each zone owner approves its own exceptions under one delivered-pricing policy. [How approvals and publishing work](https://revomo.ai/product/price-management/) 06 Measure Did recovery hold? At week 20, with the last open job quote expired, realized recovery is compared with the plan. Illustrative Outcome 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 example Example 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](https://revomo.ai/solutions/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](https://revomo.ai/solutions/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](https://revomo.ai/solutions/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](https://revomo.ai/solutions/rebates-spas-chargebacks/) #### 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. - [Commercial Context](https://revomo.ai/commercial-context/) Decide and act Analyze mill net, model price sensitivity by channel and band, compare responses, route exceptions for approval and publish effective-dated changes. - [Analytics & Insights](https://revomo.ai/product/analytics-insights/) - [Decision Optimization](https://revomo.ai/product/decision-optimization/) - [Price Management](https://revomo.ai/product/price-management/) - [AI Agents & Automation](https://revomo.ai/ai-agents-automations/) Extend where needed Quoting, agreement management and incentive programs, added for specific workflows. Quoting is generally available; the other two are not yet. - [Quoting & Deal Pricing](https://revomo.ai/product/quote-management/) - [Contract Pricing & Renewals](https://revomo.ai/product/contract-management/)*Alpha* - [Rebates & Incentives](https://revomo.ai/product/incentives-management/)*Early Access* 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. [Request a walkthrough](https://revomo.ai/contact/) [Assess your margin opportunity](https://revomo.ai/margin-assessment/) Research basis 2 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 **Masco Corporation.** [Annual Report on Form 10-K for the year ended December 31, 2025](https://www.sec.gov/Archives/edgar/data/62996/000006299626000005/mas-20251231.htm) *10 Feb 2026* - 2 **Eagle Materials Inc.** [Annual Report on Form 10-K for the fiscal year ended March 31, 2026](https://www.sec.gov/Archives/edgar/data/918646/000119312526230979/exp-20260331.htm) *19 May 2026* Plate IND · Series 2026 · Building Products & Construction Materials · RV·2026·IND·11