How to Manage Price Indexation and Price Revision Formulas
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What Is Price Indexation and Price Revision ?
Price indexation is a pricing mechanism that links contractual prices to external variables such as exchange rates, commodity prices or macroeconomic indices.
Price revisions are the contractual result of this mechanism : the adjusted price applied on a given revision date using a predefined formula.
The purpose of such a mechanism is to protect against market volatility.
Although closely related, indexation defines price movements, while revision defines the extent to which prices change. It is essential to manage both elements accurately in indexed contracts.
Read the full guideThe complexity of price revision formulas
Price revision formulas can quickly become difficult due to the technical nature of their application and the subtleties that need to be taken into account.
Managing them manually quickly becomes risky when contracts multiply and markets evolve rapidly.
Scattered files, manual calculations and dispersed data create an uncontrolled process that results in :
Wasted time
Hours spent per review cycle
Uncertain decisions
Uninformed and risky decisions
Tensions
Internal tensions and tensions with business partners
Loss of margins
Final result: compromised margins
How Convexe helps you master the price revision process
Convexe provides a dynamic calculation interface that centralises more than 50 official data series (commodities, FX, indices)
Formulas
Your formulas are pre-built and ready to use
Visualisation
Instantly visualise the impact of each price component
Presentation
Export a comprehensive analysis report in PowerPoint format with a single click
Key features
From market data to board-ready reports — here’s how your pricing revisions become fast, transparent, and data-driven.
Manual workflow vs price revision software
Streamline your entire price revision process — from data to presentation.
| Without Convexe | With Convexe | ||
|---|---|---|---|
| Data | |||
| Collection | Manual collection from scattered sources (2h) | Verified market data — ready to use | |
| Organization | Time-consuming formatting & cleaning (>1h) | Structured data and clear charts instantly | |
| Calculation | |||
| Calculation | Error-prone Excel updates and formulas (1-2h) | Fast, reliable, and transparent calculations | |
| Sensitivity & Analysis | Sensitivity checks require complex manual tweaks (1-2h) | Instant scenario testing — one click away | |
| Presentation | |||
| Preparation | Manual charting & PowerPoint building (2–3 h) | Full presentation generated automatically | |
| Pitching | Difficult to justify pricing logic to stakeholders | Clear, visual, and auditable documentation | |
| Work smarter |