Case Note: Pricing Governance Reset
Stopping margin erosion in a multi-state services platform through rigorous discount governance and dispersion analysis.
Case Notescalendar_today Feb 03, 2025schedule 5 min read
Situation
A high-growth services platform was experiencing gross margin erosion despite strong top-line performance. Analysis revealed significant pricing variance and "discount creep" driven by unstructured sales autonomy.
Action
We implemented a structural pricing control framework:
- Dispersion Analysis: Quantified the pricing spread across identical service lines and regions to identify leakage.
- Discount Thresholds: Installed a "Floor / Target / Stretch" authority matrix, requiring executive approval for any deviation below the floor.
- Governance Cadence: Instituted a weekly pricing committee to review exception requests and enforcing margin discipline.
Outcome
Gross margin stabilized within two quarters. The platform reduced pricing variance by ~14% and re-anchored the sales culture around value capture rather than volume at any cost.
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Vinay Prathy
Managing Partner
Sponsor-facing execution architecture across pricing, operating model, and finance control systems.
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