# Pricing & Revenue Management for Machinery, Equipment & Components > Revomo helps machinery, equipment and component manufacturers see which committed revenue can still be repriced, and price a cost roll across machines, options and service parts with approvals and notice periods respected. Source: https://revomo.ai/industries/machinery-equipment-components/ --- Revomo Industry Brief Machinery, 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. Explore a cost roll example[Request a walkthrough](https://revomo.ai/contact/) For machinery, equipment and component manufacturers, from one ERP to several business units How it works - **Standard cost** moves after the price is promised - **Price book and parts** change only where no commitment holds them - **Realized recovery** is measured against the approved plan - The problem - Repricing example - Other decisions - Start here 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. **ERP** Orders, backlog, cost roll **PLM / BOM** Part to model cost **CPQ / configurator** Quotes and validity **Contract files** Clauses, notice terms **Parts catalogue** Service part prices The decision - What can still move? - Base, options or parts? - From what date? - 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](https://revomo.ai/commercial-context/) 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. Illustrative Example data - 01 Signal What moved in the cost basis? - 02 Context Which commitments does it touch? - 03 Analyze How much can still be repriced? - 04 Decide Which response holds up? - 05 Govern & Execute What is approved, and from what date? - 06 Measure Did recovery hold? 01 Signal What 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. 02 Context Which 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. **1,840**changed parts **18**models **640**option codes **79**backlog orders **105**open quotes **610**service parts Commitment state becomes a field on each order and quote, so what can still be priced is a query. 03 Analyze How 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. Analysis commitment-state split *refreshed* 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 move** Never 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. 04 Decide Which response holds up? Each response is projected with price sensitivity by channel and content; buyers compare base machines more closely than options. Predictive model price sensitivity by channel and content *trained on 36 months* Uniform +2.0% Recurring recovery **$1.26M** Equipment volume **−0.6%** Service parts **Unchanged** 44% of exposure covered Cost-traced Recommended Recurring recovery **$1.96M** Equipment volume **−0.4%** Service parts **+7.4% on 598** 69% of exposure covered Material surcharge Recurring recovery **$2.04M** Equipment volume **−1.3%** Service parts **+7.4% on 598** 71% of exposure covered 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 plan guardrails applied as rules *ready for review* Goal **Recover as much of the exposure as commitments and guardrails allow** Guardrails Firm-priced backlog **excluded** Quotes inside validity **held to expiry** Dealer notice **60 days before the effective date** Equipment volume tolerance **−1.0%** Option ceiling **below the next model step** Parts with a substitute available **held for review** Price plan · cost-traced recovery scroll for all columns Segment | Scope | Revenue | Move | Recovery | Why this action | Not yet quoted | 18 models | $68.3M | Base +0.9% · options +4.1% | $1.33M | Reaches the full price book. 14 option codes stop at the ceiling. | Backlog with a clause | 32 orders | $13.8M | Clause invoked | $0.27M one-time | Once, at each clause’s index. Not in the run-rate total. | Quotes past validity | 44 quotes | $9.4M | Reissued at new prices | $0.18M one-time | Each quote ships once; honoring the old price needs an owner. | Affected service parts | 598 parts | $9.0M | +7.4% | $0.63M | Holds the 44.0% margin. A dollar pass-through (+4.1%) would let it slip to 42.2%. | Firm-priced backlog | 47 orders | $24.6M | No action available | $0 | Excluded by the commitment, not by policy. | Quotes inside validity | 61 quotes | $11.9M | Held to expiry | $0 | Committed if accepted, else reissued. | Parts with alternatives | 12 parts | $0.2M | Hold for review | $0 | Aftermarket team decides. | Total | 32 orders, 44 quotes, 18 models, 598 parts · $100.5M repriced | | $1.96M | Recurring, annual, net of expected volume response; plus $0.45M one-time | 05 Govern & execute What is approved, and from what date? Rules run against the plan before anyone signs, so approvers see only the exceptions. - 01 **Commitments checked** Firm orders and live quotes are excluded first; the rules are dry-run against the plan. - 02 **Exceptions routed** Option increases above 6.0% go to product management; clause invocations go to contracts. - 03 **Published with notice** All four price files publish on day 18 and take effect on day 78, when dealer notice expires. - **Drafted** Day 2 - **Approved** Day 12 - **Published, dealer notice sent** Day 18 - **Effective** Day 78 - **Week 12 review** Day 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 RECOVERY One policy across price book, options, dealer net and parts Rule | When | Then | Approval | `CM·FIRM` | Firm-priced order, no clause | Excluded from every action | Auto | `CM·VALID` | Quote inside validity | Hold; queue for reissue at expiry | Auto | `CM·CLAUSE` | Order carries an escalation clause | Recover at the clause index | Contracts | `CM·NOTICE` | Dealer net list changes | Effective 60 days after publication | Auto | `CM·CEIL` | Option price would reach the next model step | Cap at the ceiling | Auto | `CM·OPT` | Option increase above 6.0% | Route with analysis | Product management | `CM·PARTS` | A substitute part is available | Hold for substitution review | Aftermarket | `CM·VOL` | Modeled equipment volume below −1.0% | Block; revise plan | VP Commercial | When rules conflict, this order wins - Commitment state - Contract clause - Dealer notice - Option ceiling - Volume tolerance - Base list Commitment state comes first, so no recommendation reaches revenue already promised. [How approvals and publishing work](https://revomo.ai/product/price-management/) 06 Measure Did recovery hold? Twelve weeks after the effective date, realized recovery is compared with the approved plan. Illustrative Outcome 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 example Example 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](https://revomo.ai/solutions/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](https://revomo.ai/solutions/quoting-deal-price-guidance/) - #### 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](https://revomo.ai/solutions/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](https://revomo.ai/solutions/rebates-spas-chargebacks/) #### 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. - [Commercial Context](https://revomo.ai/commercial-context/) Decide and act Split exposure by commitment state, model price sensitivity, 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 dealer 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 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. [Request a walkthrough](https://revomo.ai/contact/) [Assess your margin opportunity](https://revomo.ai/margin-assessment/) Research basis 2 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 **RBC Bearings Incorporated.** [Form 10-K, year ended 28 March 2026](https://www.sec.gov/Archives/edgar/data/1324948/000121390026057626/ea0288814-10k_rbcbear.htm) *Filed 2026* - 2 **U.S. Census Bureau (via Federal Reserve Bank of St. Louis).** [Unfilled Orders: Machinery (A33SUO) and Value of Shipments: Machinery (A33SVS)](https://fred.stlouisfed.org/series/A33SUO) *July 2026 observations, updated September 2026* Plate IND · Series 2026 · Machinery, Equipment & Components · RV·2026·IND·06