Test how much of an entered landed-cost increase reached realized customer pricing and where unrecovered margin is concentrated.
About this analysis
Enter comparable pricing lines using prior and current product cost, freight, realized price, and unit volume. The calculation separates total landed-cost burden from realized price recovery, ranks unrecovered exposure, and tests the additional recovery required to restore entered economics. No external pass-through benchmark is inserted into the calculation. For more information, visit our distribution pricing consultants page.
Pricing lines
Product cost and freight are combined into landed economic cost. Realized prices should represent the same commercial basis in both periods.
Recovery sensitivity
Additional recovery share is a sensitivity applied to remaining unrecovered exposure. Contribution target solves the share of exposure required to reach that amount.
Pass-through by line
White bars show landed-cost movement. Blue bars show realized price movement on the same per-unit scale.
Margin economics
Lines are ranked by unrecovered exposure. Exposure is positive only where realized price movement does not fully match a positive landed-cost increase.
| Line | Units | Cost change | Price change | Pass-through | Prior margin | Current margin | Exposure |
|---|---|---|---|---|---|---|---|
| Line D | 55,000 | +$1.80 | +$1.00 | 55.6% | $7.20 | $6.40 | $44K |
| Line A | 40,000 | +$3.70 | +$3.00 | 81.1% | $13.50 | $12.80 | $28K |
| Line E | 12,000 | +$5.80 | +$4.00 | 69.0% | $24.00 | $22.20 | $21.6K |
| Line B | 25,000 | +$2.80 | +$2.00 | 71.4% | $10.80 | $10.00 | $20K |
| Line C | 18,000 | +$5.00 | +$5.50 | 110.0% | $16.00 | $16.50 | $0 |
Exposure concentration
Remaining exposure is ranked from largest to smallest to show whether under-recovery is broad or concentrated.
Full-recovery requirement
The additional price requirement is arithmetic from the entered line economics. It is not a recommended or forecast customer price.
Recovery sensitivity
Additional recovery share applies only to remaining unrecovered exposure. It does not assume that full recovery is commercially achievable.
What the interactive shows
The entered portfolio recovered 78.1% of the positive landed-cost burden through realized price movement, leaving $113,600 of line-level unrecovered exposure.
Three lines represent 82.4% of remaining exposure. Under-recovered lines would require an additional weighted $0.86 per unit to close the entered cost-price gap, while over-recovery on other lines leaves the net portfolio margin change at −$104,600.
COST PASS-THROUGH RECOVERY TEST: ILLUSTRATIVE DEFAULT RECORD LINES Line A | Units: 40,000 | Prior product cost: $20.00 | Current product cost: $23.00 | Prior freight: $1.50 | Current freight: $2.20 | Prior realized price: $35.00 | Current realized price: $38.00 Line B | Units: 25,000 | Prior product cost: $12.00 | Current product cost: $14.50 | Prior freight: $1.20 | Current freight: $1.50 | Prior realized price: $24.00 | Current realized price: $26.00 Line C | Units: 18,000 | Prior product cost: $30.00 | Current product cost: $34.00 | Prior freight: $2.00 | Current freight: $3.00 | Prior realized price: $48.00 | Current realized price: $53.50 Line D | Units: 55,000 | Prior product cost: $8.00 | Current product cost: $9.50 | Prior freight: $0.80 | Current freight: $1.10 | Prior realized price: $16.00 | Current realized price: $17.00 Line E | Units: 12,000 | Prior product cost: $50.00 | Current product cost: $55.00 | Prior freight: $4.00 | Current freight: $4.80 | Prior realized price: $78.00 | Current realized price: $82.00 PORTFOLIO POSITION Total units: 150,000 Positive landed-cost burden: $476,600 Realized price recovery: $372,000 Portfolio pass-through: 78.1% Unrecovered exposure: $113,600 Net portfolio margin change: −$104,600 Under-recovered units: 132,000 Weighted additional price required: $0.86 LINE ECONOMICS Line D | Cost change: +$1.80 | Price change: +$1.00 | Pass-through: 55.6% | Prior margin: $7.20 | Current margin: $6.40 | Exposure: $44,000 Line A | Cost change: +$3.70 | Price change: +$3.00 | Pass-through: 81.1% | Prior margin: $13.50 | Current margin: $12.80 | Exposure: $28,000 Line E | Cost change: +$5.80 | Price change: +$4.00 | Pass-through: 69.0% | Prior margin: $24.00 | Current margin: $22.20 | Exposure: $21,600 Line B | Cost change: +$2.80 | Price change: +$2.00 | Pass-through: 71.4% | Prior margin: $10.80 | Current margin: $10.00 | Exposure: $20,000 Line C | Cost change: +$5.00 | Price change: +$5.50 | Pass-through: 110.0% | Prior margin: $16.00 | Current margin: $16.50 | Exposure: $0 EXPOSURE CONCENTRATION Largest line exposure share: 38.7% Top three exposure share: 82.4% Lines driving at least 80% of exposure: 3 RECOVERY SENSITIVITY Additional recovery achieved: 50.0% Margin recovered: $56,800 Remaining exposure: $56,800 Contribution recovery target: $75,000 Required exposure recovery: 66.0% FINDING The entered portfolio recovered 78.1% of the positive landed-cost burden through realized price movement, leaving $113,600 of line-level unrecovered exposure. Three lines represent 82.4% of remaining exposure. Under-recovered lines would require an additional weighted $0.86 per unit to close the entered cost-price gap, while over-recovery on other lines leaves the net portfolio margin change at −$104,600. METHOD STATUS Prior landed cost equals prior product cost plus prior freight. Current landed cost equals current product cost plus current freight. Cost movement equals current landed cost less prior landed cost. Realized price movement equals current realized price less prior realized price. Positive cost burden equals positive cost movement multiplied by units. Price recovery equals realized price movement multiplied by units on lines with positive cost burden. Portfolio pass-through equals total realized price recovery divided by total positive cost burden. Line-level unrecovered exposure equals the positive difference between cost movement and price movement multiplied by units. Prior and current unit margin equal realized price less landed cost. Net margin change equals current unit margin less prior unit margin multiplied by units. Lines are ranked by unrecovered exposure. Lines driving 80% is the minimum ranked count required for cumulative exposure to reach at least 80% of total exposure. Weighted additional price required equals total unrecovered exposure divided by units on under-recovered lines. Recovery sensitivity multiplies remaining exposure by the entered additional recovery share. Required exposure recovery equals the entered contribution target divided by total unrecovered exposure. No external pass-through threshold, market price, freight benchmark, margin hurdle, or recommended price is inserted into the calculation.
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