The price recalculates itself.
The margin was set at signature.
Revomo helps you hold every index-linked formula as a record, see what each contract entitled you to invoice, and close the gap at the reset or at renewal.
For specialty and commodity chemicals, materials and process manufacturers, from one plant and ERP to several regions
The formula prices the book. Nobody holds the formula.
Much of this industry’s contracted price is computed, not negotiated. An agreement names a published feedstock index, a factor, a lag, a cap or deadband and a notice period, and the price resets on schedule, in both directions, so margin is decided at signature. The index, the formula, the arithmetic and the result often sit in four places, so few teams know what each contract entitled them to invoice. Revomo connects them, on one ERP or across several plants.
- Index move
- Entitled price
- Execution loss
- Now or at renewal?
It connects the records behind each formula and reset.
How Commercial Context worksThe quarter’s index settles up 7.0%.
Every formula computes correctly.
A specialty chemicals producer with two plants sells $164.0M a year under 214 index-linked agreements in four formula families. The quarter’s feedstock index settles up 7.0%; the plants’ purchases rose 8.0%. What will the formulas recover, why is the rest lost, and what can be fixed before renewal?
Illustrative example, not customer results. Recovery is annual; realized is the annualized run rate 40 weeks after the first effective date.
The index settles on the publisher’s calendar and arrives as a refreshed dataset from the subscription you license (Revomo does not supply index data).
Every formula will compute correctly. Whether the result recovers the cost is a separate question.
Each formula (index, factor, lag, cap or deadband, carry-forward, notice period) becomes a record linked to the invoices it priced and actual purchase cost. Building those records is the first piece of work.
The binding that matters: each agreement linked to its index series, with cap, carry-forward and notice as fields, not prose.
Three gaps with different owners. Only lag is an execution problem; basis and design were set at signature and recur at every reset.
Each response is projected with price sensitivity measured by segment.
Needs no customer conversation, so it is the default. Caps, deadband and basis recur at every reset.
The largest structural gain, but it waits for renewals, reopens 24 favorable agreements and breaks the 2.0% volume tolerance.
$0.25M more than reopening the book, with 24 fewer agreements reopened, inside the tolerance.
A person chooses. Timing recovery comes first because it needs no customer conversation; negotiation goes only where loss concentrates. The other 78% of the gap waits for dated renewals.
View reset plan
| Segment | Agreements | Revenue | Move | Recovery | Why this action |
|---|---|---|---|---|---|
| Monthly family: publish on settlement | 46 | $38.0M | Live day 11, not day 27 | $0.07M | Notice is 10 days; issuing it took 17. The delay was internal. |
| Quarterly family: publish inside notice | 88 | $71.0M | Live day 16, not day 47 | $0.23M | Notice goes out on day 1 and runs 15 days. Cadence is contractual; the internal delay was not. |
| Surcharge family: raise on trigger | 39 | $22.0M | From the trigger date | $0.22M | Previously raised four months late, and surcharges are not billed retroactively. |
| Quarterly family: carry the capped point | 31 of 88 | $24.6M | +1.0 pt next reset | $0.16M | They cap each reset, not the cumulative entitlement, so the truncated point carries. |
| Semi-annual family: remove the deadband | 18 of 41 | $14.6M | Proposed at renewal | $0.18M | The deadband, not the share, removes most pass-through, so the share stays. Renewals inside nine months. |
| Quarterly family: re-index | 22 of 88 | $17.8M | Proposed at renewal | $0.11M | A series that tracks what the plants buy, where basis loss is largest. |
| Semi-annual family: hold | 23 of 41 | $18.4M | Hold to renewal | $0 | Renewals 10 to 22 months out, no reopener. Held with its date. |
| Total | 214 agreements · $164.0M | $0.97M | Annual. Rows within a family overlap. | ||
Rules are dry-run against the plan first: resets inside their bands go straight through, and changes to formula terms route to renewal planning.
- 01Computed from the recordEntitled prices come from each agreement’s terms, with bands applied as written.
- 02Exceptions routedA renamed index series holds the reset; formula-term changes go to renewal planning.
- 03Published on noticePublished on day 1; monthly agreements live on day 11, quarterly on day 16.
- Index settledDay 0
- Resets drafted and dry-runDay 1
- Approved, published, notices sentDay 1
- Monthly family liveDay 11
- Quarterly family liveDay 16
- Renewal proposals concludedBy month 9
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
| Rule | When | Then | Approval |
|---|---|---|---|
IR·INDEX | Referenced series renamed or method changed | Hold; reconcile the reference before invoicing | Contract manager |
IR·FORMULA | Settlement final for the period | Compute the entitled price from the record | Auto |
IR·BAND | Move exceeds the cap or sits in the deadband | Apply the band; record the truncated amount | Auto |
IR·CARRY | Cap is per reset, not cumulative | Carry the truncated amount to the next reset | Auto |
IR·NOTICE | Entitled change ready to publish | Effective when the notice period expires | Auto |
IR·SUR | Surcharge trigger met | Raise from the trigger date, up to the ceiling | Auto |
IR·VOL | Agreement carries a volume commitment | Route with the commitment attached | Commercial director |
IR·REOPEN | Action changes a formula term | Block; route to renewal planning | VP Commercial |
- Index settlement
- Contracted factor
- Cap or deadband
- Carry-forward
- Surcharge trigger
- Notice period
The contract manager owns index references; the VP Commercial owns renewals.
At week 40, with every planned renewal concluded, realized recovery is compared with the plan.
Timing recovery held in full, and reopened volume moved −1.4% against −1.8% modeled. The $50K gap persists until the next renewal: five customers narrowed the deadband to 2.0 points instead of removing it ($30K), and four declined re-indexing ($20K). A renamed index series held six resets until week 11; that cost recovery once and is outside the run-rate gap.
Next: add the narrowed deadbands and declined re-indexing to the renewal calendar.
The same approach supports other pricing decisions.
Market-based pricing
Where a business line is priced by negotiation, which customers can take an increase, and how much?
Decision Optimization models price sensitivity by segment and compares responses, so each increase is sized to its segment, not applied across the board.
Price increase managementCost to serve
Which customers and products still earn their margin once freight mode, packaging and hazardous materials handling are counted?
Analytics & Insights allocates freight, packaging and handling to customer and product on your own transactions, labelled as an allocation.
Customer & product profitabilityContract pricing
AlphaWhich formula terms should each renewal change, and in what order?
Contract Pricing & Renewals is in alpha with design partners. The example uses pricing rules on agreement records instead, so each renewal proposal carries the loss its terms caused.
Contract pricing & renewalsReset and renewal planning
What will next quarter’s resets and this year’s renewals do to the revenue and margin plan?
Planning & Forecasting connects the reset calendar, renewal dates and committed volumes to the plan, so forecasts separate formula pass-through from pricing decisions.
Revenue & margin planning
What Revomo provides
Index settlements, formula terms, invoices, purchase cost and surcharge schedules, linked through shared definitions so every reset traces to its source.
Compare entitled with realized price, model price sensitivity, compare responses, route exceptions for approval and publish effective-dated resets.
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, and reads the index data you license; it does not supply it. Connection and publishing methods are scoped to your systems during activation.
Bring one index reset.
We will trace it end to end.
Bring a recent index reset, a formula family that never seems to recover, or a renewal you are preparing, and the people who own it. We will map how the reset works today, from where the index arrives to how prices are approved and checked, then show how Revomo could run it, on the example above or on a scoped slice of your own 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. Method: public company disclosures and the documented mechanics of the Revomo platform. Coverage: specialty and commodity chemicals, advanced materials, polymers, resins and coatings, and packaging materials.
- 1AdvanSix Inc. AdvanSix announces second quarter 2026 financial results (Form 8-K, Exhibit 99.1) 7 Aug 2026
- 2Cabot Corporation. Annual report on Form 10-K, fiscal year ended 30 September 2025 24 Nov 2025