The price list went up 5%. The average invoice went up 1%.

An increase that lands on paper and not in the bank is usually the result of dozens of small, defensible concessions nobody remembers granting.

By Steve 5 min read
Abstract bridge artwork for The price list went up 5%. The average invoice went up 1%.

A five per cent increase goes on the price list in January. By midsummer, like-for-like invoices are up about one point. Volume has held. No account has been lost. And when the question is asked directly, nobody can identify the decision that gave the other four points away. This is among the most common patterns in pricing and among the hardest to see, because every concession that produced it was reasonable on its own. The gap is not caused by one bad call. It is caused by forty small ones,…

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