A price review is easier to discuss when everybody is working from the same starting point. A little preparation helps distinguish a pricing issue from a cost, product mix or service issue.
1. State the decision in one sentence
“We need to decide whether to revise the price of this service package” is more useful than “we need better pricing”. Include the offer, customer group and reason the decision matters now.
2. Bring together what customers actually pay
A published price list may differ from realised prices after discounts, rebates and credits. Take a representative sample of transactions and note the period it covers. Keep returns and unusual one-off sales visible.
3. Understand the relevant costs
Identify the direct costs that change when another sale is made. Consider delivery, payment processing, service time and consumables. Record how each cost was calculated.
4. Compare offers fairly
A competitor’s advertised price may include different quantities, terms or service levels. Write down those differences before using it as a reference. Public market information cannot tell you your own cost to serve.
Your preparation checklist
- The specific decision and intended timing
- Current price list or service packages
- Sample transaction data and direct costs
- Discounts, credits and exceptions
- Customer feedback already available
- Known service or capacity constraints
5. Plan how a change will be reviewed
Decide what to watch after a change: realised price, volume, conversion, contribution or customer feedback. Record the starting values and review period. This makes the next decision less dependent on memory.
Missing information is a reason to label assumptions and narrow the question. It does not always mean the conversation needs to wait. Read how we approach an engagement.