A tariff moves ten points. What happens to your margin? And what is your best response?
The questions behind the question:
- A new tariff regime lands. How much of it can we pass through, where, and how fast?
- Input costs rise nine percent. What price move protects margin without losing the volume that keeps the plant loaded?
- Our discount ladder has grown by accretion for a decade. What would a clean one be worth?
- Direct, distributor or marketplace: which mix maximises contribution, not revenue?
Why it is hard today
Commercial decisions are made without the industrial consequence
A price move changes volume, which changes plant loading, which changes unit cost, which changes the margin the price move was supposed to protect. Almost no model closes that loop.
Pass-through is treated as a percentage
It is not. It should vary by customer, contract, competitor position and elasticity, and the average hides the accounts where you will lose.
The response space is never explored
The question is framed as “how bad is it” rather than “what is the best available answer”, because building the second one takes a month.
What Paradygma changes
The commercial and the industrial in one model
Volume effects flow through to plant loading, unit cost and cash, and back into margin. The number you get is the number that actually happens.
Pass-through at the right level of detail
By segment, by contract type, by geography — with the accounts that break out visible instead of averaged away.
The response, not just the exposure
Thousands of combinations of price, mix, channel and sourcing evaluated together, so the meeting is about choosing a response.
Fast enough to matter
Tariff regimes change on a six-week cycle. So can your answer.