The list price is £1,400. A third of your customers pay £900.

Legacy pricing is rarely a decision. It is the residue of decisions nobody revisited, and the arithmetic of closing the gap is friendlier than most owners assume.

By Steve 5 min read
Abstract bridge artwork for The list price is £1,400. A third of your customers pay £900.

Almost every business that has raised prices more than twice is carrying two price books. There is the one on the website, quoted to every new enquiry, and there is the one that actually generates cash: a spread of historic rates, honoured discounts and “we’ll keep you where you are” concessions attached to the customers who have been around longest. The gap between them is usually discovered by accident, when someone builds a revenue-per-customer report by cohort and finds that the accounts with the deepest relationships pay the least. The…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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