# Entitlement leakage: pricing metric definition, thresholds and response

> Discounts, terms and parts prices granted beyond what the agreement entitles, by account.

Source: https://revomo.ai/marketplace/metrics/entitlement-leakage/

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- [Explore](https://revomo.ai/marketplace/)
- [Templates](https://revomo.ai/marketplace/templates/)
- [Metrics](https://revomo.ai/marketplace/metrics/)

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

## Entitlement leakage

Discounts, terms and parts prices granted beyond what the agreement entitles, by account.
[See Entitlement leakage in Revomo →](https://revomo.ai/contact/?source=marketplace&type=metric&artifact=entitlement-leakage&name=Entitlement+leakage&collection=margin-leakage)

### Why it matters

Discounts, terms and parts prices granted beyond the agreement are leakage with a name attached. Measuring it by account and rep puts the register back in charge.

### Act when

Any account over x in a quarter

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

### What it may signal

Entitlements applied from memory rather than the register.

### What to do

The templates that respond when this metric moves.
- [Agreement register](https://revomo.ai/marketplace/templates/agreement-register/)*template*
- [Customer-specific pricing](https://revomo.ai/marketplace/templates/customer-specific/)*template*

### How it’s defined

Formula
`sum('Granted') - sum('Entitled')`

Required context
Agreements, Invoice lines, Quotes

Dimensions
Account, Agreement, Rep

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. **After a decision**: measured against what the model said the decision would deliver.

### Relevant industries

All industries

Type
Metric

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

Use in
Alerts · After a decision

Cadence
Monthly

Industries
All industries

Business need
[Margin Leakage](https://revomo.ai/marketplace/collections/margin-leakage/), [Contract Renewal](https://revomo.ai/marketplace/collections/contract-renewal/)

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

### Related metrics

- Margin Leakage & Cost Recovery #### [Off-invoice leakage](https://revomo.ai/marketplace/metrics/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 when**Above the segment baseline, or up a point in a quarter Alerts · Against plan · After a decision
- Pricing & Realization #### [Price realization index](https://revomo.ai/marketplace/metrics/price-realization/) Pocket price as a share of list, by account and segment. **Act when**Below 95 on any national account, or a two-point drop in a quarter Alerts · Against plan · After a decision
- Pricing & Realization #### [Discounts given](https://revomo.ai/marketplace/metrics/discounts-given/) Average discount off list and the share of lines discounted, by segment and rep. **Act when**A jump in the average, or new requests above the corridor Alerts · Against plan

### See Entitlement leakage 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=entitlement-leakage&name=Entitlement+leakage&collection=margin-leakage)[All metrics](https://revomo.ai/marketplace/metrics/)