Set your pricing review rhythm

Who this is for

Founder led lower-middle market companies with 5 to 50 million in annual revenue that want steady margin gains without chaos.

The quick answer

Run a light check each quarter and a deeper review twice a year. Look at win rate by segment, discount levels, cost changes, and the value you now deliver. Test changes with small customer groups before rollout. Update quoting guidance and talk tracks so sales knows when to hold list price and when to trade for value.

The method in seven steps

Book the cadence
Quarterly signal check and two change windows each year. Put dates in the leadership calendar. Name one pricing owner.
Pull the right numbers
For each segment and offer track win rate, average discount, gross margin, and deal cycle. Add key cost changes and a few customer proof points.
Build a margin bridge
Explain last quarter margin in three blocks. Price effect, cost effect, and mix effect. This shows where you can gain without guessing.
Choose list price and fences first
List price sets the anchor. Adjust it before any discount rules. Refresh minimum order sizes and service levels to protect value.
Design a small controlled test
Run A and B price cards with a small region or account set for thirty to sixty days. Track win rate, margin, and common objections.
Enable the team
Update price cards, calculators, quoting rules, and talk tracks. Run a short role play so reps practise the message.
Measure the rollout
For four weeks after changes watch renewals, exceptions, and at risk accounts. Log decisions and reasons so the story stays consistent.

Example

A thirty million distributor used the rhythm above. A test showed buyers accepted a three percent list increase when paired with a higher free freight threshold. Company margin rose one point the next quarter with no lift in churn.

Pitfalls and fixes

Random price moves. Use two windows and small tests first.
Permanent discount creep. Reset fences and approvals each review.
Weak enablement. Give sales three worked examples and a script.

Checklist

Quarterly check and two change windows booked
Segment level data ready
Margin bridge built
Test plan set with a clear success line
Team enablement assets updated
Four week rollout review plan in place