# Price increase realization: pricing metric definition, thresholds and response

> Realized increase against the announced increase, by account and family, 90 days after the effective date.

Source: https://revomo.ai/marketplace/metrics/increase-realization/

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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/)
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- [Pricing & Realization](https://revomo.ai/marketplace/metrics/?category=pricing)
- Metric

## Price increase realization

Realized increase against the announced increase, by account and family, 90 days after the effective date.
[See Price increase realization in Revomo →](https://revomo.ai/contact/?source=marketplace&type=metric&artifact=increase-realization&name=Price+increase+realization&collection=annual-price-increase)

### Why it matters

An announced increase is not a realized one. Ninety days after the effective date, realization by account and family says how much landed and where it was negotiated away.

### Act when

Below 70% of announced on any segment at 90 days

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

### What it may signal

Caps and exclusions eating the increase, negotiations reopening.

### What to do

The templates that respond when this metric moves.
- [Annual price increase plan](https://revomo.ai/marketplace/templates/annual-increase-plan/)*template*
- [List price update with caps and exclusions](https://revomo.ai/marketplace/templates/list-update/)*template*
- [Churn risk after a price change](https://revomo.ai/marketplace/templates/churn-after-price/)*template*

### How it’s defined

Formula
`('Pocket price' / 'Pocket price (pre-increase)' - 1) / 'Announced increase'`

Required context
Invoice lines, Price change log

Dimensions
Account, Family, Segment

Cadence
Reviewed monthly

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

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

### Relevant industries

All industries

Type
Metric

Category
[Pricing & Realization](https://revomo.ai/marketplace/metrics/?category=pricing)

Use in
After a decision · Against plan · Alerts

Cadence
Monthly

Industries
All industries

Business need
[Price Increase](https://revomo.ai/marketplace/collections/annual-price-increase/)

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

### Related metrics

- Pricing & Realization #### [Net price change](https://revomo.ai/marketplace/metrics/net-price-change/) Month-over-month change in net price by family and segment, with list moves separated from discount moves. **Act when**A move over x% in one month, or the same direction for y months Alerts · Against plan
- 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
- Deals & Commercial Execution #### [Capture rate, realized against modeled](https://revomo.ai/marketplace/metrics/capture-rate/) What a published decision delivered against what the model said it would, by action and by week since publish. **Act when**Below 85% at week 12 on any published action After a decision

### See Price increase realization 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=increase-realization&name=Price+increase+realization&collection=annual-price-increase)[All metrics](https://revomo.ai/marketplace/metrics/)
