Worksheet: Count how much business sits inside your price structure

A price structure only works if most business runs through it. This sheet counts the share that does and finds where the rest leaks out. It builds the Competent step of the check:

A published structure (tiers, volume breaks, options) covers most business, with exceptions counted.

Step 1. Count

Your system can usually flag invoice lines with a manual price override. Start there.

Revenue, last 12 months	$m	Share
At list, or list less a published tier or volume break
At a contract price set inside the published rules
At a manual or negotiated price outside the rules
Total		100%

Step 2. Where the exceptions cluster

Cluster (site, sales rep, customer size, product)	Revenue outside the structure ($m)	Share of that cluster	Likely reason
e.g. Small cash customers at three sites	4.2	60%	No published tier for them, so staff guess

Step 3. Fix the structure or the controls

Cause	Fix in the structure (new tier, volume break, option)	Or fix in the controls (approval, expiry)	Owner	Date

If most business sits outside the structure, the structure is wrong. Redesign it before you tighten the controls.

Step 4. Count every quarter

Quarter	Share inside the structure	Share outside	Biggest cluster outside	Reported to

Done when: a published structure covers most revenue, and the revenue outside it is counted every quarter.

Adapted from our own pricing diagnostic (PSP, 2011).