# Net price change: pricing metric definition, thresholds and response

> Month-over-month change in net price by family and segment, with list moves separated from discount moves.

Source: https://revomo.ai/marketplace/metrics/net-price-change/

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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/)
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- [Market Response](https://revomo.ai/marketplace/collections/market-response/)

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- [Industrial distribution](https://revomo.ai/marketplace/templates/?industry=distribution)
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- [Chemicals & materials](https://revomo.ai/marketplace/templates/?industry=chemicals)

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- Metric

## Net price change

Month-over-month change in net price by family and segment, with list moves separated from discount moves.
[See Net price change in Revomo →](https://revomo.ai/contact/?source=marketplace&type=metric&artifact=net-price-change&name=Net+price+change&collection=annual-price-increase)

### Why it matters

Net price is the first place pricing power shows up or slips away. Separating list moves from discount moves says whether the change was decided or conceded.

### Act when

A move over x% in one month, or the same direction for y months

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

### What it may signal

Competitive pressure, customer pushback, inflation passing through unevenly.

### What to do

The templates that respond when this metric moves.
- [List price update with caps and exclusions](https://revomo.ai/marketplace/templates/list-update/)*template*
- [Cost pass-through scenario](https://revomo.ai/marketplace/templates/cost-pass-through/)*template*

### How it’s defined

Formula
`'Net price' / 'Net price (prior period)' - 1`

Required context
Invoice lines, Price lists

Dimensions
Family, Segment, Region

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

Use in
Alerts · Against plan

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=net-price-change&name=Net+price+change&collection=annual-price-increase) Defined, monitored and connected to action, on representative data or your own.

### Related metrics

- Pricing & Realization #### [Price increase realization](https://revomo.ai/marketplace/metrics/increase-realization/) Realized increase against the announced increase, by account and family, 90 days after the effective date. **Act when**Below 70% of announced on any segment at 90 days After a decision · Against plan · Alerts
- 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 Net price change 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=net-price-change&name=Net+price+change&collection=annual-price-increase)[All metrics](https://revomo.ai/marketplace/metrics/)