# Contract price lag: pricing metric definition, thresholds and response

> Contract prices against the current list, by agreement age and family, including parts written into machine contracts.

Source: https://revomo.ai/marketplace/metrics/contract-lag/

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Business need
- [Margin Leakage](https://revomo.ai/marketplace/collections/margin-leakage/)
- [Cost Recovery](https://revomo.ai/marketplace/collections/cost-recovery/)
- [Price Increase](https://revomo.ai/marketplace/collections/annual-price-increase/)
- [Quote & Deal Performance](https://revomo.ai/marketplace/collections/quote-deal-performance/)
- [Contract Renewal](https://revomo.ai/marketplace/collections/contract-renewal/)
- [Rebates & Incentives](https://revomo.ai/marketplace/collections/rebates-incentives/)
- [Market Response](https://revomo.ai/marketplace/collections/market-response/)

Industry
- [Industrial distribution](https://revomo.ai/marketplace/templates/?industry=distribution)
- [Machinery & industrial products](https://revomo.ai/marketplace/templates/?industry=machinery)
- [Building products](https://revomo.ai/marketplace/templates/?industry=building)
- [Chemicals & materials](https://revomo.ai/marketplace/templates/?industry=chemicals)

Search Marketplace

- [Marketplace](https://revomo.ai/marketplace/)
- [Metrics](https://revomo.ai/marketplace/metrics/)
- [Contracts, Rebates & Incentives](https://revomo.ai/marketplace/metrics/?category=contracts)
- Metric

## Contract price lag

Contract prices against the current list, by agreement age and family, including parts written into machine contracts.
[See Contract price lag in Revomo →](https://revomo.ai/contact/?source=marketplace&type=metric&artifact=contract-lag&name=Contract+price+lag&collection=contract-renewal)

### Why it matters

Contract prices drift from the list as escalators are missed. Lag by agreement age and family shows where the annual increase never reached.

### Act when

Over five points on agreements older than twelve months

Thresholds are set per business; the ones written as x and y are placeholders your team fills in.

### What it may signal

Escalators missing or unapplied.

### What to do

The templates that respond when this metric moves.
- [Agreement register](https://revomo.ai/marketplace/templates/agreement-register/)*template*
- [Contract renewal plan](https://revomo.ai/marketplace/templates/renewal-plan/)*template*
- [Parts price realization](https://revomo.ai/marketplace/templates/parts-realization/)*template*

### How it’s defined

Formula
`1 - 'Contract price' / 'Current list price'`

Required context
Agreements, Price lists

Dimensions
Agreement, Age, Family

Cadence
Reviewed monthly

Lineage
Every value traces to the invoice line or governing record it was computed from.

Use in
**Alerts**: an agent watches it against a rule and alerts you when it trips. **Against plan**: tracked against the target, with the bridge that says what moved it.

### Relevant industries

All industries

Type
Metric

Category
[Contracts, Rebates & Incentives](https://revomo.ai/marketplace/metrics/?category=contracts)

Use in
Alerts · Against plan

Cadence
Monthly

Industries
All industries

Business need
[Contract Renewal](https://revomo.ai/marketplace/collections/contract-renewal/)

[See this in Revomo →](https://revomo.ai/contact/?source=marketplace&type=metric&artifact=contract-lag&name=Contract+price+lag&collection=contract-renewal) Defined, monitored and connected to action, on representative data or your own.

### Related metrics

- Contracts, Rebates & Incentives #### [Contract renewal uplift](https://revomo.ai/marketplace/metrics/renewal-uplift/) Price change at renewal against the realization gap the plan set out to close, by agreement. **Act when**Below plan on any agreement above x in value After a decision · Against plan
- Contracts, Rebates & Incentives #### [Entitlement leakage](https://revomo.ai/marketplace/metrics/entitlement-leakage/) Discounts, terms and parts prices granted beyond what the agreement entitles, by account. **Act when**Any account over x in a quarter Alerts · After a decision
- Pricing & Realization #### [Group-level price overrides](https://revomo.ai/marketplace/metrics/group-overrides/) Overrides applied above the account level: how many, how large, and who approved them. **Act when**Frequent large-scale adjustments Alerts

### See Contract price lag on your commercial data.

We will show how Revomo defines, monitors and connects this metric to commercial action, using representative data or your own.
[See this on your commercial data →](https://revomo.ai/contact/?source=marketplace&type=metric&artifact=contract-lag&name=Contract+price+lag&collection=contract-renewal)[All metrics](https://revomo.ai/marketplace/metrics/)