Summary

Pricing pressure isn’t a messaging problem; it’s a value gap. It lingers when segments, offers and proof don’t line up. The durable fix is value-led design: revisit segmentation, codify the offer, equip sales. That shifts price haggling into outcome-led conviction—and profitable growth.

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Our Perspective

What this means for leaders navigating growth, change or transformation in their organisation.

Why Pressure Spikes

When price dominates the conversation, it’s rarely a messaging issue; it’s a value issue. Buyers lean on procurement tactics when outcomes aren’t clear, offers are hard to compare, and your proof is thin or inconsistent. That’s when discounts creep, scope oscillates, and cycle times stretch after the first proposal. The real friction sits in the seam between who you prioritise, what you package, how you price, and how you evidence impact.

Most organisations we work with only break the cycle when they reset value end‑to‑end—segment focus, offer rules, and proof—and then equip the front line to defend it with confidence.

Close The Gaps

Treat price as the consequence of designed value. Three moves tend to change the weight of the conversation quickly:

• Re-segment to where you truly win and define who you’ll not pursue.
• Codify a handful of offers and clear pricing guardrails across regions and channels.
• Make outcomes verifiable with references, benchmarks, and delivery standards buyers can check fast.

EY observes that 95% of companies that lifted prices by more than 5% in 2022 also grew above 5%, indicating that value-backed price discipline can coexist with healthy growth.

Equip The Front Line

Value clarity dies in the last mile if commercial teams can’t explain trade‑offs or defend the rules. Give sales a shared logic: which outcomes matter, what each option includes, and the thresholds where price should hold. Role‑play real scenarios, pre‑agree non‑negotiables, and make deal reviews fast and consistent so the organisation speaks with one voice.

McKinsey notes that 57% of companies say their sales teams lack the negotiation training needed to communicate and sustain price changes, which underlines a preventable capability gap. Close it with pragmatic tools—storylines, calculators, and crisp approvals—so you stop negotiating against yourself.

Signals To Monitor

You can see value gaps before they show up in revenue. Look for:

• Realised price spread widening within the same segment.
• Margin variance across similar deal shapes and sizes.
• Proposal-to-close time jumping after pricing is introduced.
• Procurement repeatedly requesting bespoke options or step-downs.

If these signals persist, assume value is hard to see, not that the market won’t pay. When segmentation, offer design, and evidence lock together, pricing pressure eases—and conversations move from line items to outcomes, where conviction compounds over time.

Sources:

• Five strategies to strengthen software pricing models — McKinsey
• 2023 Private Equity B2B Pricing Study — EY

Further Resources

1. How to Justify a Rebrand: Linking Value and Growth
2. Win-Loss Insights: Exposing Value Misfits in Your Brand
3. Decoding Rebranding: Aligning Identity with Growth

Brand clarity often begins with the right questions — we’d be glad to explore them with your team. Start the conversation.

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