# Discount corridor optimization: optimization template

> Corridor floors by segment and class that recover margin without moving the accounts that would leave. A Revomo template for all industries.

Source: https://revomo.ai/marketplace/templates/corridor-optimization/

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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

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- [Optimization](https://revomo.ai/marketplace/templates/?category=optimization)
- Template

## Discount corridor optimization

Corridor floors by segment and class that recover margin without moving the accounts that would leave.
[See the Discount corridor optimization in Revomo →](https://revomo.ai/contact/?source=marketplace&type=template&artifact=corridor-optimization&name=Discount+corridor+optimization&collection=quote-deal-performance)

### 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 price](https://revomo.ai/marketplace/metrics/asp/)*Metric* Act when: A change over x% month over month
- [Price realization index](https://revomo.ai/marketplace/metrics/price-realization/)*Metric* Act when: Below 95 on any national account, or a two-point drop in a quarter
- [Discounts given](https://revomo.ai/marketplace/metrics/discounts-given/)*Metric* Act when: A jump in the average, or new requests above the corridor
- [Custom price requests](https://revomo.ai/marketplace/metrics/custom-price-requests/)*Metric* Act when: A spike against the trailing eight weeks
- [Capture rate, realized against modeled](https://revomo.ai/marketplace/metrics/capture-rate/)*Metric* Act when: Below 85% at week 12 on any published action
- [Corridor compliance](https://revomo.ai/marketplace/metrics/corridor-compliance/)*Metric* Act 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

All industries

Type
Template

Category
[Optimization](https://revomo.ai/marketplace/templates/?category=optimization)

Industries
All industries

Business need
[Quote & Deal Performance](https://revomo.ai/marketplace/collections/quote-deal-performance/)

Composed of
3 platform objects

[See this in Revomo →](https://revomo.ai/contact/?source=marketplace&type=template&artifact=corridor-optimization&name=Discount+corridor+optimization&collection=quote-deal-performance) On representative data, or a slice of your own.

### Related templates

- Optimization #### [Quote guidance bands](https://revomo.ai/marketplace/templates/quote-guidance/) Target, floor and stretch for every quote, from the win curve and the margin goal, with approval routes for anything outside. All industries · Uses 7 metrics
- Predictive Models #### [Win probability for quotes](https://revomo.ai/marketplace/templates/win-probability/) The chance a quote wins at each price, from your own outcomes, so guidance is a curve rather than a floor. All industries · Uses 2 metrics
- Analysis & Diagnostics #### [Win, loss and quote velocity](https://revomo.ai/marketplace/templates/win-loss/) Win rate by price position, discount depth and segment, with cycle time from quote to order. All industries · Uses 1 metric

### See this template in Revomo.

We will show the Discount corridor optimization running on representative data, or on a slice of your own, and what it would take to run it on yours.
[See this on your commercial data →](https://revomo.ai/contact/?source=marketplace&type=template&artifact=corridor-optimization&name=Discount+corridor+optimization&collection=quote-deal-performance)[All templates](https://revomo.ai/marketplace/templates/)
