Repricing after raw material shifts without losing key accounts
A sequence for updating list prices when input costs changed but customer contracts still reference old assumptions.
Input costs moved. List prices stayed flat for eighteen months because sales feared account losses. Finance sees blended margin erosion; sales sees competitor pressure. Both views can be true.
Separate structural from negotiable margin
Rebuild fully loaded cost for each major SKU or service line with current bills of material, labour rates, and freight. Flag items below break-even before discussing discounts. Sales needs a bright line between “we can negotiate” and “we must reprice.”
Tier your accounts
Long-standing clients on legacy tiers deserve transition plans—not surprise increases on renewal day. Prepare two scenarios: immediate adjustment vs. phased adjustment tied to volume commitments. Leadership picks the scenario; sales executes with scripts that reference cost facts, not apologies.
Sequence internal alignment
Finance presents numbers first in a joint session with sales leadership. Account owners then brief clients with approved ranges. Skipping the joint session produces mixed messages that extend negotiations and burn management time.
External support
A Pricing Model Review delivers the SKU-level margin view and sensitivity notes. We do not negotiate with your clients, but we give sales and finance a shared workbook before customer conversations begin.