Before the price increase: five questions the data should answer.

Start with realized price

A list-price announcement is an intention. Realized price is what remains after discounts, rebates, credits and negotiated terms. Before selecting an increase, reconcile the sales ledger with those deductions and identify which can be assigned to transactions. Record any allocation assumptions rather than presenting estimated account economics as exact.

Find the unit of decision

Average margin is an unreliable guide when the portfolio contains different products, customer segments and service commitments. Build a SKU/customer/channel view, then ask which level a commercial team can actually act on. A highly detailed report is not useful if it cannot be translated into quotation rules, renewal decisions or account conversations.

Separate value from cost

Higher input cost can create urgency, but it does not establish willingness to pay. Compare service requirements, differentiation and available alternatives. Segment customers by needs and buying behavior; avoid treating a large account as price-sensitive simply because it has historically received a large discount.

Test the downside explicitly

Illustrative scenario: a product sells for 100 with variable cost of 70. A move to 105 raises unit contribution from 30 to 35 before any response. If volume falls from 100 to 90 units, total contribution becomes 3,150 versus 3,000 initially. This simplified example excludes fixed costs, mix, working capital and service changes. It shows why a price decision needs both unit economics and a volume-response range.

Give the decision an owner

Define the action, authorized exceptions, rollout date and evidence that would trigger a review. Monitor realization, retention, contribution and complaints together. A price increase that is repeatedly discounted away is a governance problem as much as an analytical one.

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