Way2GreatAdvisory
Areas of work · 01

Pricing and margin

How much of the list price reaches the invoice — and how to make it more.

How I work
Source data reconciled to the books. Every number has a source, a formula or a named assumption; data gaps are flagged, not guessed.
Scope of work

The scope is built around the pricing decisions the board has to make — not around the analyses that could be done. Work usually opens with the diagnostic; further modules are a separate decision.

Price and margin realisation diagnosticentry engagement

  • Price list, invoice prices and volumes lined up at the lowest available level
  • Margin leakage by product group, channel and customer
  • How much of recent increases actually reached the result
  • An answer to whether the problem is in the price list, in discounts or in the sales mix — and whether to go further
Output: A model reconciled to the books, a margin leakage map and a board recommendation

Price list architecture

  • Price gaps between lines and tiers of the offer
  • Product overlap and cannibalisation
  • Position of premium products and add-ons
Output: Rules for the price list structure

Position versus competitors

  • Price comparison with main competitors in key segments
  • Price corridors the company can move within
Output: Recommended positioning per category

Discount policy

  • How discounts react to list price increases
  • Structure of discount thresholds and exception decisions
  • Rules for the period of introducing new prices
  • Rules designed to pass legal review — together with the client’s counsel
Output: Discount rules consistent with the pricing strategy

Promotion ROI and management

  • Post-event evaluation: uplift, cannibalisation, post-promotion dip, cost to margin
  • Which mechanics and which products earn, and which only shift sales in time
  • Planning rules and promotion calendar; who approves and on what basis
  • A tool for planning and settling promotions (Excel or Power BI), implemented at the client and run by its team
Output: A list of promotions to stop, planning rules and a settlement tool

Trade terms and negotiation preparation

  • Review of contracts with customers and suppliers: retro discounts, bonuses, fees, payment terms
  • Profitability per customer and per contract after all terms, not just price
  • A numbers pack for annual negotiations: cost to serve, concession limits, scenarios
  • Experience on both sides of the table — as seller in FMCG and as buyer in retail
Output: A trade terms map and material for negotiations

Decision scenarios

  • Increase scenarios per category — conservative, balanced, growth
  • Impact on margin, volume and sales mix
  • Short- and long-term effect
Output: Scenarios with clearly named trade-offs

Implementation and control

  • Who may grant which discount
  • Monthly price realisation review
  • Incentives that reflect price realisation, not only volume
Output: Rules, accountabilities and a review rhythm that sustain the effect
What remains after the project
  • A price model reconciled to the books, with assumptions the team can change
  • Price lists in scenarios, prepared for the board decision
  • Discount and promotion rules and a design for the monthly control report
  • A promotion settlement tool, if that module is chosen

Bring a decision you need to make. Leave with the numbers and a recommendation.

A free 45-minute introductory call. Tell me what decision you are facing and what data you have — I will say whether a diagnostic makes sense and where to start.