Per Unit Cost Pass-Through Agent (Definition)

Curated Agents

Per-Unit-Cost-Pass-Through-Agent-A.png

Per Unit Cost Pass-Through Agent

Checks if rising costs are passed to customers effectively.

Who Is This For?

  • Pricing Teams

  • Industries with frequent raw‑material cost swings

What Problem Does It Solve?

Margin Erosion from Cost Increases

It checks whether rising costs have been effectively reflected in the customer prices.

Poor Cost Recovery Visibility

It pinpoints customers and products where cost increases were not adequately recovered in price.

What Does It Do?

Calculates a Cost Pass‑Through

Calculates a cost pass‑through rate between two time periods and highlights where the rate is too low.

Targets Recovering

Targets recovering the same per‑unit cost increase in the price, providing an actionable goal for adjustments.

Compares

Compares the latest 3 months versus the previous 3 months from the beginning of the year to detect recent gaps.

Outputs a List

Outputs a list of customers/products with poor cost recovery to focus follow‑up actions.

Estimates Impact

Optionally estimates impact by applying the previous absolute profit per unit.

Methodology

Compute Cost Pass-through rate calculation between time periods and highlight too low value. Targeting to increase the price by the same absolute amount as the cost increased.

Business Objective (Typical Prompt)

Analysis Name: Per Unit Cost Pass-Through into Prices 
Description: Checks if rising costs are passed to customer prices effectively. Targeting to recover the same per unit cost increase into the price
Required Data: Cost, Revenue, Customer, Product
Methodology: Compute Cost Pass-through rate calculation between time periods and highlight too low value. Targeting to increase the price by the same absolute amount as the cost increased. 
Metrics: Cost Pass Through Ratio is the ratio between the price absolute change and the cost absolute change.

Required Data

  • Cost

  • Revenue

  • Customer

  • Product

See Also