# Rebate tier optimization: optimization template

> Tier thresholds and rates that pay for growth and stop paying for the baseline, within the program budget.

Source: https://revomo.ai/marketplace/templates/rebate-tier-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)

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- Template

## Rebate tier optimization

Tier thresholds and rates that pay for growth and stop paying for the baseline, within the program budget.
[See the Rebate tier optimization in Revomo →](https://revomo.ai/contact/?source=marketplace&type=template&artifact=rebate-tier-optimization&name=Rebate+tier+optimization&collection=rebates-incentives)

### The business question

Which tier thresholds and rates pay for growth and stop paying for the baseline?

### What it does

Optimizes tiers and rates within the program budget using the growth-responsiveness model, and shows payout and growth under the design.

### What’s inside

Composed from the platform’s own objects, so it is a configuration you can open, not a document.
- Optimizer: tiers and rates
- Model: growth responsiveness
- View: payout and growth under the design

### Uses these metrics

The measures that call for this template when they move, each with its own page.
- [Off-invoice leakage](https://revomo.ai/marketplace/metrics/off-invoice-leakage/)*Metric* Act when: Above the segment baseline, or up a point in a quarter
- [Rebates paid](https://revomo.ai/marketplace/metrics/rebates-paid/)*Metric* Act when: A consistent rise over a quarter, or paid above accrued
- [Rebate program ROI](https://revomo.ai/marketplace/metrics/program-roi/)*Metric* Act when: Below 1.0 on any program at quarter close

### 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

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

Type
Template

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

Industries
Industrial distribution, Building products, Chemicals & materials

Business need
[Rebates & Incentives](https://revomo.ai/marketplace/collections/rebates-incentives/)

Composed of
3 platform objects

[See this in Revomo →](https://revomo.ai/contact/?source=marketplace&type=template&artifact=rebate-tier-optimization&name=Rebate+tier+optimization&collection=rebates-incentives) On representative data, or a slice of your own.

### Related templates

- Commercial Data & Context #### [Rebate accrual model](https://revomo.ai/marketplace/templates/rebate-accrual/) Accruals by program, tier and period, retroactive or incremental, reconciled to what was paid. Distribution, Building products, Chemicals · Uses 1 metric
- Analysis & Diagnostics #### [Rebate program effectiveness](https://revomo.ai/marketplace/templates/rebate-effectiveness/) Growth against accrual by program and account: who grew for the rebate, who was paid for volume they would have shipped anyway. Distribution, Building products, Chemicals · Uses 2 metrics
- Planning & Scenarios #### [Rebate program redesign](https://revomo.ai/marketplace/templates/rebate-redesign/) Retroactive to incremental, tier restructuring and the accrual shift, tested on last year’s volume before it goes to customers. Distribution, Building products, Chemicals · Uses 2 metrics

### See this template in Revomo.

We will show the Rebate tier 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=rebate-tier-optimization&name=Rebate+tier+optimization&collection=rebates-incentives)[All templates](https://revomo.ai/marketplace/templates/)
