# Reprice for cost shocks in days, not quarters

> Tariffs, freight and supplier increases hit the whole book at once. Model the response, hold the guardrails, and publish the update while the window is still open.

Source: https://revomo.ai/solutions/cost-tariff-freight-recovery/

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Solutions · Cost, tariff & freight recovery

## When costs move, reprice in days, not quarters .

Tariffs, freight and supplier increases hit the whole book at once. Revomo models the response, holds the guardrails, and publishes the update while the window is still open.
[See Revomo in action](https://revomo.ai/contact/)[Assess your margin opportunity](https://revomo.ai/margin-assessment/)

<24 hrs

To re-price a portfolio, not quarters

5–10 days

First module live · full go-live 6–10 wks

100–300 bps

Margin improvement target · industry-benchmarked

The problem

### The cost memo always beats the price file.

The response takes longer than the shock “We ate Q3.” By the time the surcharge spreadsheet clears every regional review, the increase window has closed and the margin is gone for good.

Blanket responses punish the wrong accounts “We put 8% on everyone and lost the good ones.” Without segment-level modeling, pass-through is a blunt instrument, over-recovering on loyal accounts, under-recovering where costs actually moved.

Contract terms surface after the update ships “Legal called about the Henderson agreement.” Price-protected items belong out of the update automatically, not discovered by an angry phone call.

Planning & Forecasting: FY26 revenue plan Compare Save scenario

Scenario drivers
** Tariff shock **−$1.1M** Steel & aluminum +8% · effective Sep ** Supplier increases **−$0.5M** Resin & fasteners +3.5% ** Freight cost headwind **−$0.3M** Ocean + LTL rates normalize ** Price action **+$2.4M** List +2.0% · guided quotes · Oct ** Demand upside **+$1.0M** Distributor restock · housing starts
Scenarios

Base Cost shock Managed response

Every driver ties to a governing record · TAR‑2026‑09 · PL‑2026‑03 · FRT‑Q4

FY revenue (plan)

$79.9M

Pocket margin

22.9%

vs target $80.0M

▲ on plan

actual forecast scenario range

RV·2026·S2 · See it coming

### See the shock before it lands

Driver-based forecasting connects tariffs, freight and supplier increases to your revenue and margin plan. Toggle the drivers and watch the exposure, then price the response.
- Tariff, supplier and freight drivers tied to governing records
- Scenario presets: base, cost shock, managed response
- The gap to target, quantified before it happens

RV·2026·S2 · Model the response

### Model the recovery with guardrails on

Compose the response by segment (list updates, lane-based freight, corridor discipline) and watch the margin bridge build while volume and floor guardrails hold.
- Levers with live margin and volume impact
- Contract-protected items held out automatically
- The plan, the exceptions and the math on one screen

Response Planner: Northeast cost recovery

Current pocket margin

$2.06M

Plan pocket margin

$2.24M

Expected recovery

+$184K

Volume impact

−1.2%

Response levers

** Market-list update +3.0% **+$92K** Applied by segment · net of protected items · volume −0.9% ** Lane freight adjustment **+$76K** Re-based to current lane costs · volume −0.3% ** Discount corridor tightened **+$16K** Floor raised to model floor · no volume effect
Contract-protected items **held out** 37 items excluded · honored to term

Current Freight only Recommended

Pocket margin run-rate · plan effective Oct 1

Every lever ties to a governing record · PL‑MKT‑AH‑DIST · FRT‑LANE‑Q4 · AGR‑1041

Margin floor **maintained** Volume decline **within 2% limit**
Create governed price action

Price Action Center: Northeast Distribution Cost Recovery

Northeast Distribution Cost Recovery Approved · ready to publish

Scope Northeast · Distributor channel · 184 customers · 1,842 SKUs Action +3.0% market-list update + lane-based freight adjustment Effective October 1, 2026 Impact +$184K GM annually Exceptions 37 contract-protected items Inherited list PL-MKT-AH-DIST Overrides 26 customer accounts

Draft Validate Approve Publish

Validation: **passed** · 0 conflicts Approvals: **2 of 2** complete Publish targets: **ERP · CRM · Quote guidance**
Publish price action

RV·2026·S2 · Publish with control

### From decision to every system, governed

The chosen response becomes a scoped price action: validated against conflicts, approved on the record, published to ERP, CRM and quote guidance in one motion.
- Draft → validate → approve → publish, on the record
- Scope, effective dates and exceptions explicit
- Outcomes tracked against the modeled plan

How it runs

### Cost signal to published price, one governed path

Step 01 **Detect & size** Cost movements land against your book, exposure sized by segment, product and lane. [Planning & Forecasting →](https://revomo.ai/platform/#planning-forecasting)

Step 02 **Decide within guardrails** The optimizer proposes pass-through by segment; margin floors and volume limits are enforced, not remembered. [Decision Optimization →](https://revomo.ai/platform/#decision-optimization)

Step 03 **Publish & track** The update ships to every downstream system with approvals and audit on the record, and realization is tracked against the plan. [Price Management →](https://revomo.ai/platform/#price-management)

FAQ

### The questions pricing and finance ask first

Can we pass through partially, by segment?

Yes, that is the point. The response planner models pass-through per segment with elasticity-aware volume impact, so you recover where costs actually moved and protect the accounts that matter. What happens to contract-protected items?

They are held out automatically. Agreements with price protection in term are excluded from mass updates and honored to renewal, visible as an explicit exception count, not a surprise. How fast is “fast” really?

Re-pricing an affected portfolio is an under-24-hour motion once the spine is live. A first module goes live in five to ten days; a full deployment runs six to ten weeks.

### Beat the next cost memo.

Bring a real cost scenario. We will model the recovery on data like yours, guardrails and all.
[See Revomo in action](https://revomo.ai/contact/)[Assess your margin opportunity](https://revomo.ai/margin-assessment/)

Plate S2 · Series 2026 · Solutions · RV·2026·S2