# Margin, unit and percent: pricing metric definition, thresholds and response

> Pocket margin per unit and as a share of pocket price, by SKU and account. When to act, what a move may signal, and the Revomo templates that respond.

Source: https://revomo.ai/marketplace/metrics/unit-margin/

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[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/)
- [Revenue & Margin Performance](https://revomo.ai/marketplace/metrics/?category=performance)
- Metric

## Margin, unit and percent

Pocket margin per unit and as a share of pocket price, by SKU and account.
[See Margin, unit and percent in Revomo →](https://revomo.ai/contact/?source=marketplace&type=metric&artifact=unit-margin&name=Margin%2C+unit+and+percent&collection=margin-leakage)

### Why it matters

Margin per unit and margin as a share of pocket price are where cost changes and mispricing finally meet. A single cost driver can move it before anyone reprices.

### Act when

A drop over x points, or a single cost driver up over y%

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

### What it may signal

A hidden cost uptick or mispricing.

### What to do

The templates that respond when this metric moves.
- [Price optimization within corridors](https://revomo.ai/marketplace/templates/price-optimization/)*template*
- [Cost-plus pricing](https://revomo.ai/marketplace/templates/cost-plus/)*template*

### How it’s defined

Formula
`('Pocket price' - 'Landed cost') / 'Pocket price'`

Required context
Invoice lines, Landed cost

Dimensions
SKU, Account, 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. **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
[Revenue & Margin Performance](https://revomo.ai/marketplace/metrics/?category=performance)

Use in
Alerts · Against plan · After a decision

Cadence
Monthly

Industries
All industries

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

[See this in Revomo →](https://revomo.ai/contact/?source=marketplace&type=metric&artifact=unit-margin&name=Margin%2C+unit+and+percent&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 Margin, unit and percent 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=unit-margin&name=Margin%2C+unit+and+percent&collection=margin-leakage)[All metrics](https://revomo.ai/marketplace/metrics/)