Curated Agents
Cost Pass-Through Agent
Automatically detects where prices lag cost changes and prioritizes the biggest
recovery opportunities.
Who Is This For?
Pricing managers and analysts who need to ensure cost increases are properly reflected in customer pricing strategies.
What Problem Does It Solve?
Many businesses struggle with rising costs that silently erode margins when not properly passed through to customer pricing.
Hidden Margin Erosion
Cost increases of $2+ per unit that go unnoticed can cost businesses over $100K per quarter across product categories.
Manual Monitoring Gaps
Traditional manual processes miss critical cost-to-price relationships, leading to delayed reactions and lost profitability.
Inconsistent Recovery Rates
Without systematic tracking, different products and customers experience varying levels of cost recovery effectiveness.
What Does It Do?
Automated Monitoring
Continuously tracks cost pass-through rates across all products and customers.
Smart Detection
Identifies customers and products with poor cost recovery performance.
Actionable Insights
Provides clear recommendations for pricing adjustments and margin recovery.
Methodology
Calculation of the Compute Cost Pass-Through Rate across different time periods, with particular emphasis on identifying values that are excessively low. The objective is to recover the same margin rate.
Business Objective (Typical Prompt)
Name: Cost Pass-Through Effectiveness Tracker
Description: Checks if rising costs are passed to customer prices effectively.
Compute Cost Pass-through rate calculation between time periods and highlight too low value. Targeting to recover the same margin rate.
Cost Pass Through Ratio is the ratio between the price variation and the cost variation.
Required Data
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Cost
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Revenue
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Customer
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Product
For more information see List of Required Fields.