# Fixed cost as a share of price: pricing metric definition, thresholds and response

> Fixed cost per unit against pocket price, by plant and family. When to act, what a move may signal, and the Revomo templates that respond.

Source: https://revomo.ai/marketplace/metrics/fixed-cost-share/

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Business need
- [Margin Leakage](https://revomo.ai/marketplace/collections/margin-leakage/)
- [Cost Recovery](https://revomo.ai/marketplace/collections/cost-recovery/)
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- [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)

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- [Margin Leakage & Cost Recovery](https://revomo.ai/marketplace/metrics/?category=leakage)
- Metric

## Fixed cost as a share of price

Fixed cost per unit against pocket price, by plant and family.
[See Fixed cost as a share of price in Revomo →](https://revomo.ai/contact/?source=marketplace&type=metric&artifact=fixed-cost-share&name=Fixed+cost+as+a+share+of+price&collection=cost-recovery)

### Why it matters

Fixed cost per unit rises when volume falls, and price rarely follows. Watching it by plant and family shows where cost-plus prices are quietly under-recovering.

### Act when

A sudden jump over x%, or a steady rise over three months

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

### What it may signal

Scale issues, plant utilisation.

### What to do

The templates that respond when this metric moves.
- [Cost-plus pricing](https://revomo.ai/marketplace/templates/cost-plus/)*template*
- [Landed cost model](https://revomo.ai/marketplace/templates/landed-cost/)*template*

### How it’s defined

Formula
`'Fixed cost per unit' / 'Pocket price'`

Required context
Costs, Invoice lines

Dimensions
Plant, 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.

### Relevant industries

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

Type
Metric

Category
[Margin Leakage & Cost Recovery](https://revomo.ai/marketplace/metrics/?category=leakage)

Use in
Alerts

Cadence
Monthly

Industries
Machinery & industrial products, Chemicals & materials, Building products

Business need
[Cost Recovery](https://revomo.ai/marketplace/collections/cost-recovery/)

[See this in Revomo →](https://revomo.ai/contact/?source=marketplace&type=metric&artifact=fixed-cost-share&name=Fixed+cost+as+a+share+of+price&collection=cost-recovery) Defined, monitored and connected to action, on representative data or your own.

### Related metrics

- Margin Leakage & Cost Recovery #### [Cost of raw materials](https://revomo.ai/marketplace/metrics/raw-material-cost/) Input cost by material and month against the index the formula prices on. **Act when**Up over x% in one month, or a steady rise over a quarter Alerts
- Margin Leakage & Cost Recovery #### [Freight recovery rate](https://revomo.ai/marketplace/metrics/freight-recovery/) Freight billed against freight paid, by lane and account. **Act when**Under 100% on any lane for two months Alerts · Against plan · After a decision
- Margin Leakage & Cost Recovery #### [Freight, packaging and indirect costs](https://revomo.ai/marketplace/metrics/indirect-cost-share/) Freight, packaging and other indirect costs as a share of invoice, so the true landed cost is what margin is measured against. **Act when**Up over x% of invoice Alerts

### See Fixed cost as a share of price 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=fixed-cost-share&name=Fixed+cost+as+a+share+of+price&collection=cost-recovery)[All metrics](https://revomo.ai/marketplace/metrics/)