Margin Leakage
See where intended economics break down between list and pocket, understand the cause, and determine what to do next.
Metrics to watch
All metrics →- Margin Leakage & Cost Recovery
Off-invoice leakage
Everything that comes off after the invoice, as points of list: rebates, freight, terms and claims, co-op and surcharges where they apply.
Act whenAbove the segment baseline, or up a point in a quarter
- Pricing & Realization
Price realization index
Pocket price as a share of list, by account and segment.
Act whenBelow 95 on any national account, or a two-point drop in a quarter
- Pricing & Realization
Discounts given
Average discount off list and the share of lines discounted, by segment and rep.
Act whenA jump in the average, or new requests above the corridor
- Revenue & Margin Performance
Margin, unit and percent
Pocket margin per unit and as a share of pocket price, by SKU and account.
Act whenA drop over x points, or a single cost driver up over y%
- Margin Leakage & Cost Recovery
Days to pay against terms
Actual days to pay against agreed terms, the early-pay discounts taken late, and the accounts asking for longer terms.
Act whenMore than x% of accounts asking for relaxed terms, or days beyond terms rising
- Margin Leakage & Cost Recovery
Surcharge capture rate
Surcharges applied against surcharges due, and the waivers by account and approver.
Act whenUnder 90%, or waivers rising
- Contracts, Rebates & Incentives
Entitlement leakage
Discounts, terms and parts prices granted beyond what the agreement entitles, by account.
Act whenAny account over x in a quarter
Templates to start with
All templates →- Analysis & Diagnostics
Margin leakage waterfall
List to pocket for any slice of the business, with the reason behind every bar and the record that governs it.
- Analysis & Diagnostics
Price realization by account and segment
Realized price against list and target, by account, segment and rep, with the accounts under the corridor named.
- Analysis & Diagnostics
Customer and product profitability
Pocket margin after every adjustment and cost to serve, by customer, product and the two together.
- Analysis & Diagnostics
Discount corridor compliance
Which quotes and orders left the corridor, by how much, who approved them and what it cost.
- Analysis & Diagnostics
Payment terms and days-to-pay leakage
Agreed terms against actual days to pay, early-pay discounts taken late, and the cost of both by account.
- Analysis & Diagnostics
Surcharge capture and waiver tracking
Surcharges that should have applied, did apply and were waived, by account and by who waived them.
- Commercial Data & Context
Price-to-pocket walk model
Invoice lines joined to every on- and off-invoice adjustment, so each step from list to pocket is a column with a governing record.
Relevant solutions
The solution page explains the buyer problem and Revomo’s approach; this collection is the concrete set of artifacts around it.
Industries
See Margin Leakage in Revomo.
We will walk through the metrics and templates in this collection on representative data, or on a slice of your own.