# Cost pass-through scenario: planning & scenarios template

> A cost shock, the price response by segment and its timing, and the margin path in between.

Source: https://revomo.ai/marketplace/templates/cost-pass-through/

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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)

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- [Planning & Scenarios](https://revomo.ai/marketplace/templates/?category=decision)
- Template

## Cost pass-through scenario

A cost shock, the price response by segment and its timing, and the margin path in between.
[See the Cost pass-through scenario in Revomo →](https://revomo.ai/contact/?source=marketplace&type=template&artifact=cost-pass-through&name=Cost+pass-through+scenario&collection=cost-recovery)

### The business question

If input costs jump, what price response do we take, where and when?

### What it does

Models a cost shock by input, the pass-through rate by segment and its timing, and the margin path month by month in between. Scenarios can be compared before one is chosen.

### What’s inside

Composed from the platform’s own objects, so it is a configuration you can open, not a document.
- Scenario: cost shock by input
- Ruleset: pass-through rate by segment
- View: margin path by month

### Uses these metrics

The measures that call for this template when they move, each with its own page.
- [Net price change](https://revomo.ai/marketplace/metrics/net-price-change/)*Metric* Act when: A move over x% in one month, or the same direction for y months
- [Cost of raw materials](https://revomo.ai/marketplace/metrics/raw-material-cost/)*Metric* Act when: Up over x% in one month, or a steady rise over a quarter
- [Interest rates](https://revomo.ai/marketplace/metrics/interest-rates/)*Metric* Act when: A rise over 50 bps in a market
- [Tariff and trade changes](https://revomo.ai/marketplace/metrics/tariffs-trade/)*Metric* Act when: Any new measure in a market you source from or sell into

### 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

[Chemicals & materials](https://revomo.ai/marketplace/templates/?industry=chemicals)[Machinery & industrial products](https://revomo.ai/marketplace/templates/?industry=machinery)[Building products](https://revomo.ai/marketplace/templates/?industry=building)

Type
Template

Category
[Planning & Scenarios](https://revomo.ai/marketplace/templates/?category=decision)

Industries
Chemicals & materials, Machinery & industrial products, Building products

Business need
[Cost Recovery](https://revomo.ai/marketplace/collections/cost-recovery/), [Market Response](https://revomo.ai/marketplace/collections/market-response/)

Composed of
3 platform objects

[See this in Revomo →](https://revomo.ai/contact/?source=marketplace&type=template&artifact=cost-pass-through&name=Cost+pass-through+scenario&collection=cost-recovery) On representative data, or a slice of your own.

### Related templates

- Commercial Data & Context #### [Landed cost model](https://revomo.ai/marketplace/templates/landed-cost/) Standard cost plus inbound freight, duty and handling, effective-dated, so margin is measured against what the unit actually cost. Distribution, Building products, Chemicals · Uses 4 metrics
- Analysis & Diagnostics #### [Freight recovery scorecard](https://revomo.ai/marketplace/templates/freight-scorecard/) Freight billed against freight paid by lane and account, and the delivered prices set before carrier rates moved. Distribution, Building products · Uses 1 metric
- Optimization #### [Freight recovery optimization](https://revomo.ai/marketplace/templates/freight-recovery-optimization/) Lane surcharges and delivered-price resets that recover absorbed freight where it is recoverable and leave alone where it is not. Distribution, Building products · Uses 2 metrics

### See this template in Revomo.

We will show the Cost pass-through scenario 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=cost-pass-through&name=Cost+pass-through+scenario&collection=cost-recovery)[All templates](https://revomo.ai/marketplace/templates/)
