It’s a situation we’ve all faced—the relentless expectation to do “more with less” leads to ambitious internal goals, stretched personnel, and no budget left to spend. And often, this is a self-inflicted predicament. Too optimistically, we assume we can run multiple initiatives within our department, only to realize that everything takes longer than expected, and there are always fires to put out first.
Consequently, we push critical initiatives down the road, limping along with unoptimized processes and missed opportunities to improve sales and margins. We tell ourselves that next quarter we’ll focus on pricing, next year we’ll make the necessary changes.
The good news is that, at some point, the pain threshold becomes so high that you have no choice but to address the unoptimized process. But waiting until that breaking point often results in unnecessary stress, strained relationships, and in some unfortunate cases, the need for a leadership change to finally get the job done.
This is especially frustrating when you consider that pricing initiatives are some of the fastest ways to deliver financial results. I’ve seen companies recoup 2x, 5x, or more of their initial investment in just months! Remember that a 1% improvement in price typically yields 11% bottom line improvement. And if you’re thinking, “I’ll get to it next year,” ask yourself: “Why not now?” The impact pricing initiatives can have on your bottom line makes them worth prioritizing.
So, what if your budget is already tapped out? I get it—budgets are tight, and competing priorities abound. But the key is to get creative. Start by looking at ongoing projects that may have lower ROI or could be paused to free up resources for a pricing initiative. You can also consider smaller, quick-win pricing projects that don’t require much investment but can deliver meaningful returns—such as conducting a price leakage assessment or refining customer segmentation.
Cross-functional collaboration can also help unlock hidden resources. If you demonstrate the potential ROI of a pricing initiative, it may be easier to justify reallocating budget from other departments or areas. I’ve seen teams partner with sales, finance, or even operations to launch pilot projects with minimal costs and reap the rewards quickly.
Many businesses are entering the Budget season right now…consider this your friendly reminder to start budgeting for your upcoming pricing initiatives. Don’t wait until next year to ask for funding. Start planning now, even if it means reallocating resources or starting small. Engage your key stakeholders, outline the pricing opportunities within your business, and build a business case that justifies the investment.
Pricing is one of the most powerful levers for profitability, and waiting only postpones the benefits. So, take the first step today and make sure your organization is set up to optimize pricing before the next fire drill strikes.
If you have any questions or need help, please reach out.
