Pricing
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5 min read
Why most pricing projects stall at the spreadsheet
A pricing model is easy to build and hard to ship. The gap is usually a sales conversation nobody has had yet.
By Dana Harlow
The spreadsheet is the easy part
Most pricing projects produce a beautiful model within two weeks. Then they sit. The model answers what to charge, but not how to tell a customer who has paid less for three years that the price is changing.
The work that actually moves a pricing change is a set of conversations: with the sellers who will carry it, with the five customers most likely to object, and with finance about how the transition will show up in the numbers.
Three questions before you build anything
What will a seller say in the first thirty seconds? Which existing customers are we willing to lose? What does the first renewal cycle look like month by month? If you cannot answer those, the spreadsheet is premature.
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