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

> Pocket price as a share of list, by account and segment. When to act, what a move may signal, and the Revomo templates that respond.

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

---

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

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

## Price realization index

Pocket price as a share of list, by account and segment.
[See Price realization index in Revomo →](https://revomo.ai/contact/?source=marketplace&type=metric&artifact=price-realization&name=Price+realization+index&collection=margin-leakage)

### Why it matters

The index is the single number that says how much of the list you keep. It names the accounts and segments where the intended price is not the price paid.

### Act when

Below 95 on any national account, or a two-point drop 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

Discounts beyond policy, contracts written at old lists.

### What to do

The templates that respond when this metric moves.
- [Discount corridor optimization](https://revomo.ai/marketplace/templates/corridor-optimization/)*template*
- [Quote guidance bands](https://revomo.ai/marketplace/templates/quote-guidance/)*template*
- [Contract renewal price optimization](https://revomo.ai/marketplace/templates/renewal-optimization/)*template*

### How it’s defined

Formula
`'Pocket price' / 'List price'`

Required context
Invoice lines, Price lists, Agreements

Dimensions
Account, Class, Family, Region, 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. **Against plan**: tracked against the target, with the bridge that says what moved it. **After a decision**: measured against what the model said the decision would deliver.

### Relevant industries

All industries

Type
Metric

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

Use in
Alerts · Against plan · After a decision

Cadence
Monthly

Industries
All industries

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

[See this in Revomo →](https://revomo.ai/contact/?source=marketplace&type=metric&artifact=price-realization&name=Price+realization+index&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 #### [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
- Revenue & Margin Performance #### [Margin, unit and percent](https://revomo.ai/marketplace/metrics/unit-margin/) Pocket margin per unit and as a share of pocket price, by SKU and account. **Act when**A drop over x points, or a single cost driver up over y% Alerts · Against plan · After a decision

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