Discount corridor optimization

The business question

Where should discount floors sit so margin recovers without losing the accounts that would leave?

What it does

Sets corridor floors by segment and class using the volume-response model, and shows the expected recovery under each floor.

What’s inside

Composed from the platform’s own objects, so it is a configuration you can open, not a document.

• Optimizer: corridor floors
• Model: volume response
• View: floors with expected recovery

Uses these metrics

The measures that call for this template when they move, each with its own page.

• Average selling priceMetricAct when: A change over x% month over month
• Price realization indexMetricAct when: Below 95 on any national account, or a two-point drop in a quarter
• Discounts givenMetricAct when: A jump in the average, or new requests above the corridor
• Custom price requestsMetricAct when: A spike against the trailing eight weeks
• Capture rate, realized against modeledMetricAct when: Below 85% at week 12 on any published action
• Corridor complianceMetricAct when: Below 90%, or exception value rising

Commercial context required

What Revomo reads to run it. Everything else in the template is derived from these records.

• The governed commercial context: customers, products, transactions, prices, costs and agreements

Relevant industries