Worksheet · B2B: Business Pricing Health Check
Plan your answer to a competitor's price move
It prints on A4 with room to write.
When a competitor cuts price, the debate starts after the event and the loudest voice wins. This sheet writes the answer to your two most likely events before they happen. It builds the Competent step of the check:
For likely competitor events there is an agreed response posture, where to defend, where to concede.
Step 1. The two most likely events
| Event | Competitor | How likely this year | Segments exposed | Revenue at risk ($m) |
|---|---|---|---|---|
| e.g. A 5% cut to trade prices on core lines | Competitor B | High: a new plant to fill | Trade builders | 6 |
Step 2. The plan for each
| Question | Event 1 | Event 2 |
|---|---|---|
| How we will know it is real (the signal) | ||
| Segments where we defend | ||
| Segments where we concede | ||
| The most we will move, and on what (price, terms, service) | ||
| Who decides | ||
| Within how many days | ||
| What sales says to customers, word for word |
Step 3. Signal or noise
Check before anyone reacts.
- Is it confirmed by two customers, or by a tender result?
- Is it on core lines, or a clearance of old stock?
- Is it one region, or national?
- Is it a list change, or one deal?
Step 4. What matching would cost
| Event | Revenue exposed ($m) | Cut to match (%) | Margin given up by matching ($m) | Volume we would lose by holding ($m) | Margin on that volume ($m) | Cheaper to match or hold? |
|---|---|---|---|---|---|---|
Decide your response alone. Never discuss it with a competitor.
Done when: both plans are written and agreed by the people named as deciders, and sales has the wording.
Adapted from our own pricing self-assessment (PSP, 2004).
From the B2B: Business Pricing Health Check. Your report links the sheet for each of its moves.