Scope of work
Pricing work looks beyond the published price list. We reconstruct what customers pay after discounts, rebates, credits, freight allowances and other commercial terms. The analysis shows how realized prices vary across products, customers and channels, and which differences have a commercial explanation.
A pricing recommendation must account for how customers buy and how sales teams negotiate. We assess contract provisions, renewal patterns, competition, service requirements and approval practices before proposing changes. Implementation can include revised price structures, discount authority, exception reporting and measures of commercial performance.
We reconcile invoice and contract information, develop price waterfalls for relevant segments and assess the cost to serve. Findings are tested with commercial and finance teams so that data errors and genuine differences in buying behavior are distinguished. Proposed changes include the operating rules required to maintain them.
Questions to address
- Discounts, rebates and service commitments are recorded in different systems.
- List-price increases produce a different result in invoiced revenue.
- Customer or channel comparisons omit the cost of commercial terms.
- Sales teams lack clear guidance on negotiating and approving exceptions.
When to consider this work
- A pricing or contract review
- Changes in input costs
- Expansion of a reseller or distributor channel
- A gap between planned and realized margin
How we approach it
Reconstruct realized price
Combine invoice lines with rebates, credits and contract terms. Agree how the analysis reconciles to financial reports and how timing differences are handled.
Explain the variation
Examine customer segments, products, order patterns and channel arrangements. Investigate exceptions with the commercial teams responsible for them.
Set commercial rules
Develop recommended price and discount arrangements. Address renewals, approval thresholds, sales incentives and the reporting needed to review implementation.