Revomo Industry BriefMachinery, Equipment & Components

The price is committed
before the cost is known.

Revomo helps you see which committed revenue can still be repriced, then price a cost roll across the machine, its options and the parts it will need, with commitments, notice periods and approvals respected.

For machinery, equipment and component manufacturers, from one ERP to several business units

The problem

The price is fixed first. The cost arrives later.

A machine or component is priced when a configuration is quoted, and its cost keeps moving until it ships. Firm orders and quotes inside their validity window cannot be repriced at all. Other orders carry a right to reprice that sits in a contract file. The machine also sets the entry price of decades of parts, often priced by another team. Revomo connects these records so your team can see what is still movable, decide the response and measure what held, on one ERP or across several business units.

ERPOrders, backlog, cost roll
PLM / BOMPart to model cost
CPQ / configuratorQuotes and validity
Contract filesClauses, notice terms
Parts catalogueService part prices
The decision
  1. What can still move?
  2. Base, options or parts?
  3. From what date?
  4. What was recovered?
Public evidence
  • RBC Bearings reports there may be a lag of several months before it can pass cost increases through, particularly for orders already in its backlog.1
  • U.S. machinery makers held $152.2 billion of unfilled orders in July 2026, about three and a half months of shipments.2
Commercial Context

Commercial Context connects the records behind each pricing decision.

How Commercial Context works
Cost roll example

The quarterly cost roll lands.
Over a quarter of next year is already promised.

An equipment maker with 18 models, 640 option codes and 22 dealers completes its standard cost roll. It must decide which of the next twelve months of revenue can still be repriced, how to split the move across base machines, options and service parts, and when: dealer price changes need 60 days’ notice.

$2.86M
Annual cost exposure
$1.96M
Planned recovery, annual
69% of the exposure
$1.67M
Realized run rate, annual
85% of plan at week 12

Illustrative example, not customer results. Recovery is recurring and annual, with one-time recovery shown separately; realized is the annualized run rate 12 weeks after the effective date.

IllustrativeExample data
01SignalWhat moved in the cost basis?

Costed through the bills of material, the roll adds $2.48M a year to equipment cost and $0.38M to service parts.

Part numbers changed
1,840
of 14,600 purchased parts
Weighted cost increase
+7.4%
on $33.5M of affected spend
Also sold as service parts
610
$9.2M of parts revenue

Exposure is costed to model, option and part before any price changes.

02ContextWhich commitments does it touch?

Each changed part is traced to the models and options that use it, then to every commitment already carrying a price: backlog orders, open quotes and the parts catalogue.

1,840changed parts18models640option codes79backlog orders105open quotes610service parts

Commitment state becomes a field on each order and quote, so what can still be priced is a query.

03AnalyzeHow much can still be repriced?

Before asking how fast to respond, the split asks how much of the next twelve months can respond at all.

Analysiscommitment-state splitrefreshed
Next twelve months of equipment revenue by commitment state · revenue · cost exposure
Equipment revenue$128.0M · $2.48M
Firm-priced backlog, no clause−$24.6M · $0.48M
Quotes inside their validity window−$11.9M · $0.23M
Backlog with an escalation clause$13.8M · $0.27M
Quotes past validity$9.4M · $0.18M
Not yet quoted$68.3M · $1.32M
Addressable$91.5M · $1.77M
$0.71M · 29%
Inside a price that cannot moveNever recoverable. Treating it as a process failure fixes nothing.
32 orders
Recovery rights not yet used$13.8M of backlog carries a clause held in a contract file, not on the order.
04DecideWhich response holds up?

Each response is projected with price sensitivity by channel and content; buyers compare base machines more closely than options.

Predictive modelprice sensitivity by channel and contenttrained on 36 months
One percentage across the price book, service parts left alone.

Covers 44% while the business believes it took 2%: it moves the base machine, where cost barely moved, as much as the options, and leaves parts untouched.

Base +0.9%, options +4.1% on average, affected service parts +7.4%.

The only response that prices both legs. It recovers $0.08M less than the surcharge for under a third of its volume loss.

List held, +2.4% surcharge on equipment, affected service parts +7.4%.

Recovers the most but breaks the 1.0% volume tolerance, and a surcharge must later be removed or converted to list.

A person chooses the response. The cost-traced plan puts most of the move on options, where the purchased assemblies sit, and prices affected parts to hold their margin.

View price plan
Price planguardrails applied as rulesready for review
GoalRecover as much of the exposure as commitments and guardrails allow
Guardrails
Firm-priced backlogexcluded
Quotes inside validityheld to expiry
Dealer notice60 days before the effective date
Equipment volume tolerance−1.0%
Option ceilingbelow the next model step
Parts with a substitute availableheld for review
Price plan · cost-traced recoveryscroll for all columns
SegmentScopeRevenueMoveRecoveryWhy this action
Not yet quoted18 models$68.3MBase +0.9% · options +4.1%$1.33MReaches the full price book. 14 option codes stop at the ceiling.
Backlog with a clause32 orders$13.8MClause invoked$0.27M one-timeOnce, at each clause’s index. Not in the run-rate total.
Quotes past validity44 quotes$9.4MReissued at new prices$0.18M one-timeEach quote ships once; honoring the old price needs an owner.
Affected service parts598 parts$9.0M+7.4%$0.63MHolds the 44.0% margin. A dollar pass-through (+4.1%) would let it slip to 42.2%.
Firm-priced backlog47 orders$24.6MNo action available$0Excluded by the commitment, not by policy.
Quotes inside validity61 quotes$11.9MHeld to expiry$0Committed if accepted, else reissued.
Parts with alternatives12 parts$0.2MHold for review$0Aftermarket team decides.
Total32 orders, 44 quotes, 18 models, 598 parts · $100.5M repriced$1.96MRecurring, annual, net of expected volume response; plus $0.45M one-time
05Govern & executeWhat is approved, and from what date?

Rules run against the plan before anyone signs, so approvers see only the exceptions.

  1. 01Commitments checkedFirm orders and live quotes are excluded first; the rules are dry-run against the plan.
  2. 02Exceptions routedOption increases above 6.0% go to product management; clause invocations go to contracts.
  3. 03Published with noticeAll four price files publish on day 18 and take effect on day 78, when dealer notice expires.
  1. DraftedDay 2
  2. ApprovedDay 12
  3. Published, dealer notice sentDay 18
  4. EffectiveDay 78
  5. Week 12 reviewDay 162

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 · COMMITMENT-STATE RECOVERYOne policy across price book, options, dealer net and parts
RuleWhenThenApproval
CM·FIRMFirm-priced order, no clauseExcluded from every actionAuto
CM·VALIDQuote inside validityHold; queue for reissue at expiryAuto
CM·CLAUSEOrder carries an escalation clauseRecover at the clause indexContracts
CM·NOTICEDealer net list changesEffective 60 days after publicationAuto
CM·CEILOption price would reach the next model stepCap at the ceilingAuto
CM·OPTOption increase above 6.0%Route with analysisProduct management
CM·PARTSA substitute part is availableHold for substitution reviewAftermarket
CM·VOLModeled equipment volume below −1.0%Block; revise planVP Commercial
When rules conflict, this order wins
  1. Commitment state
  2. Contract clause
  3. Dealer notice
  4. Option ceiling
  5. Volume tolerance
  6. Base list

Commitment state comes first, so no recommendation reaches revenue already promised.

How approvals and publishing work
06MeasureDid recovery hold?

Twelve weeks after the effective date, realized recovery is compared with the approved plan.

IllustrativeOutcome of the example
Annualized run rate against plan, week 12
$1.67M realized of $1.96M planned · 85%

Equipment volume moved −0.3% against −0.4% planned, so the shortfall is in what buyers configure. The $290K run-rate gap has two continuing causes: buyers avoided three repriced option codes ($190K) and switched to substitute parts on 31 repriced part numbers ($100K). One-time recovery came in at $0.37M against $0.45M: sellers honored 19 lapsed quotes at the old price before the reissue queue opened on day 18.

Next: review the three option codes, and add the 31 part numbers to substitution review.

Cost roll exampleExample data
Other decisions

The same approach supports other pricing decisions.

  • Machine and parts profitability

    Does the parts demand a machine creates pay for the discount taken to win it?

    Analytics & Insights reads machine and service parts revenue on the same records, so contribution is measured per model and channel, not in two separate P&Ls.

    Customer & product profitability
  • Quote pricing

    Which lapsed quotes should be reissued at current prices, and which honored?

    Quoting & Deal Pricing puts target and floor prices from the governed price book in front of the seller and routes exceptions for approval, so honoring an old price is a recorded decision.

    Quotes & deal pricing
  • Escalation rights

    Alpha

    Which orders carry a right to reprice, and what notice does it require?

    Contract Pricing & Renewals is in alpha with design partners. The example holds clauses and notice terms as pricing rules on order records, so each right is invoked or declined on purpose.

    Contract pricing & renewals
  • Dealer programs

    Early Access

    What did each machine earn once dealer programs settled after shipment?

    Rebates & Incentives, in early access, holds program accruals and settlements against the orders they belong to, so realized margin includes what was paid later. What a dealer charges stays the dealer’s decision.

    Rebates & incentives

What Revomo provides

Connect

Cost roll, bills of material, price book, quotes, order terms and parts catalogue, linked through shared definitions so every figure traces to its source.

Decide and act

Split exposure by commitment state, model price sensitivity, compare responses, route exceptions for approval and publish effective-dated changes.

Extend where needed

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

Revomo works alongside your ERP and configurator, which keep pricing orders and building quotes. Connection and publishing methods are scoped to your systems during activation.

Bring one cost roll and one order book.
We will run it end to end.

Bring your last standard cost roll, the open order book with its terms, and the people who own pricing, contracts and parts. We will map how the decision works today, from where cost arrives to how quotes, notice and approvals are handled, 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 · company filing and government statistics

These sources support the description of the industry problem, not Revomo results. Every figure in the example is illustrative, chosen to be internally consistent rather than representative. Method: public company disclosure, U.S. government order statistics and the documented mechanics of the Revomo platform.

  1. 1RBC Bearings Incorporated. Form 10-K, year ended 28 March 2026 Filed 2026
  2. 2U.S. Census Bureau (via Federal Reserve Bank of St. Louis). Unfilled Orders: Machinery (A33SUO) and Value of Shipments: Machinery (A33SVS) July 2026 observations, updated September 2026
Plate IND · Series 2026 · Machinery, Equipment & Components · RV·2026·IND·06
Plate B2 · Series 2026