# Know which customers and products actually make money > Revenue rank hides the truth. Rank every account and SKU by pocket margin, after discounts, freight, rebates and cost-to-serve. Source: https://revomo.ai/solutions/customer-product-profitability/ --- Solutions · Customer & product profitability ## Know which customers make you money . Revenue rank hides the truth. Revomo ranks every account and SKU by pocket margin (after discounts, freight, rebates and cost-to-serve) and turns the tail into priced actions. [See Revomo in action](https://revomo.ai/contact/)[Assess your margin opportunity](https://revomo.ai/margin-assessment/) 100–300 bps Margin improvement target · industry-benchmarked $2M–$5M At risk yearly · typical $200M mfr / distributor 5 days To your own waterfall, free assessment The problem ### Your biggest accounts and your best accounts are not the same list. Revenue ranks, profit doesn’t “They’re our biggest account.” Size buys deference (deeper discounts, free freight, tolerance for returns) and nobody checks what the relationship earns after all of it. Cost-to-serve is invisible “Freight, rush orders, returns, on the house.” The costs that separate a good account from a loss-maker never land on the account, so every customer looks like the average. Averages hide the loss-makers “The product line is fine on average.” A healthy blended margin can hide SKUs selling below pocket zero for years, subsidized by the winners next to them. Customer profitability, the whale curve Peak of curve 142% Profit-making accounts 146 Giving profit back 38 Nearly half the profit your best accounts earn is handed back by the tail, and revenue rank hides which is which. Illustrative preview · not connected to live data RV·2026·S7 · The whale curve ### See how much profit the tail gives back Rank customers by pocket profit and the picture is always the same shape: the best accounts earn more than 100% of profit, and the tail hands a chunk of it back. The question is which accounts, and yours has an answer. - Cumulative pocket profit by account, ranked - Loss-making relationships named, with the drivers - The same curve by product line, region or rep RV·2026·S7 · SKU-level truth ### Every product’s pocket margin, after everything Product profitability computed after discounts, freight, rebates and handling, per SKU, per segment. Negative-pocket products surface with the records that price them. - Pocket margin per SKU, not blended per line - Below-median and negative-pocket flags, continuously - One click from a flagged SKU to its pricing records Product profitability, fasteners & extrusions Product | Revenue TTM | Pocket margin | | AL-EXT-240 · anodized extrusion | $4.2M | 28.4% | Healthy | FS-HD-88 · fastener kit | $2.9M | 22.1% | Healthy | GLV-STL-STD · galvanized stock | $2.2M | 8.9% | Below median | BR-PLT-12 · base plate | $1.8M | 11.2% | Below median | SEAL-EPDM · gasket set | $0.9M | −3.8% | Negative pocket | Pocket margin per SKU after freight, rebates and handling, the loss-makers surface with the records that price them. Illustrative preview · not connected to live data Margin Lens · Summit Building Supply Invoice price $6.66M Off-invoice leakage −$372K Pocket margin $2.06M 32.7% of pocket Price-to-pocket waterfall · tap any step to read the record that drives it Base / standard list published list $7.20M list Market price alignment ↳ AH · Distributors list PL-MKT-AH-DIST live $7.02M −$180K Customer list price ↳ Summit customer list PL-CUST-SUMMIT live $6.84M −$180K On-invoice discount (deal) ↳ Summit standard quote Q-5012 live $6.72M −$120K Promotions applied ↳ Q3 stocking promo PROMO-Q3-STOCK live $6.66M −$60K Invoice (net) price most tools stop here $6.66M = invoice Off-invoice rebates ↳ Summit Q3 Commercial Program AGR-1041 live $6.29M −$372K Pocket price the number that hits the bank $6.29M = pocket Cost of goods standard cost of goods sold $2.06M −$4.23M Pocket margin net of cost & every adjustment $2.06M margin Off-invoice rebates · recommended Off-invoice rebate of **$372K** is **5.6%** of invoice, invisible to the rep pricing the next order. Summit is growth-responsive (2.8× ROI), shift the base from retroactive to incremental to protect baseline spend. Summit Q3 Commercial Program · Open AGR-1041 → RV·2026·S7 · From ranking to reasons ### Why an account earns what it earns Profitability tells you which; the waterfall tells you why. Tap any account and walk list to pocket, every discount, freight subsidy and rebate cited to its governing record. - The full price-to-pocket walk behind every ranking - Each leak traces to the record that authorizes it - Fixes become priced, governed actions, not resolutions How it runs ### From raw transactions to a ranked, actionable book Step 01 **Land the true costs** Invoices, adjustments, freight, rebates and cost-to-serve land on one governed spine. [Data & Context Studio →](https://revomo.ai/platform/#data-context-studio) Step 02 **Rank by pocket** Every account and SKU ranked by pocket margin, with drivers, whale curve to waterfall. [Analytics & Insights →](https://revomo.ai/platform/#analytics-insights) Step 03 **Act on the tail** Loss-makers become priced actions: corridor moves, freight terms, program re-bases, approved and tracked. [Price Management →](https://revomo.ai/platform/#price-management) FAQ ### The questions commercial leaders ask first How is this different from the profitability report we already run? Two ways: it computes pocket margin, after off-invoice costs your report likely stops short of, and every number traces to a governing record, so the finding survives the meeting where someone says “I don’t believe that number.” Do we have to allocate cost-to-serve perfectly first? No. Start with the costs you already capture (freight, rebates, discounts) which usually reorders the ranking on their own. Refine allocations over time; the spine makes each refinement land everywhere at once. What do we actually do about a loss-making account? Rarely fire it. Usually reprice it: the waterfall shows which specific terms make it a loss-maker, and each one becomes a governed action (a corridor move, a freight term, a program re-base) with the impact modeled first. ### Rank your book by pocket, not revenue. A quarter of extracts in, your whale curve and waterfall back, free, and yours to keep. [See Revomo in action](https://revomo.ai/contact/)[Assess your margin opportunity](https://revomo.ai/margin-assessment/) Plate S7 · Series 2026 · Solutions · RV·2026·S7