Pricing
Every customer pays the same rate card. Some of them cost twice as much to serve.
Most firms know their margin by product. Far fewer know it by customer, and the difference between the two is where the money tends to hide.
Rialto Bridge
Pricing
Articles on pricing.
Pricing
The estimate said eight hours. The job took twelve. The estimate still says eight.
Most businesses that quote work already know their estimates drift. Far fewer know which direction the error runs, or what…
Pricing
The rebate arrives in January. It is most of the year’s profit.
Retrospective supplier rebates rarely show up where the decisions are made, and by the time they land the pricing that…
Pricing
The price list went up 5%. What customers actually paid went up 1%.
Between the published price and the cash that lands there sit a dozen small deductions, each individually defensible, and together…
Pricing
The competitor cut its price by 15%. Nobody knows which customers actually saw it.
When a rival drops price, the instinct is to protect the whole book. The arithmetic and the evidence usually point…
Pricing
The quote was accepted in full. Nobody asked a question.
A fast, frictionless yes feels like a win. It is also the clearest signal a business ever gets that its…
Pricing
The contract allows an annual uplift. It has never been applied.
Most long contracts contain a mechanism for raising price each year. The mechanism is rarely the problem: the letter is.
Pricing
The rep hit quota. The gross margin on the deal was 11%.
Revenue quotas are easy to administer and easy to explain, and they quietly make discounting free for the one person…
Pricing
Onboarding is free. It costs a fortnight of the delivery team.
The cheapest concession in the negotiation is usually the most expensive thing the business owns, and it rarely appears in…
Pricing
The catalogue has 4,000 lines. Customers know the price of nine.
Most businesses are judged on a fraction of their price list, and most manage every line as though it were…
Take it further
This is the general pattern. Your business is the specific case.
Everything here is free to read with an account, and always will be. What it cannot do is tell you which of these applies to your numbers, your market and your constraints. That is the work we do with clients.