The Strategic Framework (How to Make Every Pricing Decision)
You face pricing decisions constantly. No systematic framework. Making it up as you go.
Your profitability strategies need structure. Your financial performance requires consistent decision-making.
The strategic framework for every pricing decision:
Step 1: Diagnose current situation. Current gross profit margin by product/service. Current capacity utilization. Customer acquisition cost. Win/loss rate on proposals. Owner's time allocation.
Step 2: Identify the real problem. Most "pricing problems" are actually differentiation problems, targeting problems, communication problems, confidence problems, or cost structure problems.
Step 3: Apply the decision matrix.
Healthy margins, at capacity → RAISE PRICES Low margins, at capacity → RAISE PRICES urgently
Healthy margins, under capacity → GROW VOLUME at current prices Low margins, under capacity → FIX MARGINS FIRST
Your business efficiency improves with systematic decisions. Your profit margins stabilize with consistent frameworks.
Critical insight: In almost every scenario, margin improvement comes before volume growth. The only exception is when margins are already healthy and capacity is available.
Your earnings improvement accelerates when you stop treating each pricing decision as unique. Your revenue growth becomes strategic instead of reactive.
Step 4: Implement and measure. Test with small segments. Track actual responses. Adjust based on data, not emotions.
Most business owners make pricing decisions based on immediate pressure-a competitor's price, a customer's complaint, a slow month's desperation.
You're using a framework. Making strategic decisions. Building sustainable business instead of chasing short-term wins that create long-term problems.
Business Owners hire Next Step CFO to double and triple their profit using business and financial strategies that their competition isn't doing.
