The single part of pricing most holding back the others, named in one sentence, so your work fixes the cause rather than a symptom.
The four parts sit in a dependency order. Upstream weakness constrains everything downstream, so it is fixed first. The rule: your binding constraint is the weakest (lowest-scoring) part that sits highest in this order. If two are tied, the one higher in the order is the constraint.
| Order | Part | Why it sits here |
|---|---|---|
| 1 (most upstream) | Value and cost foundation | You cannot structure or set prices for value you do not understand; everything rests on this. |
| 2 | Pricing structure and model | The structure that captures value; built on understanding what the value is. |
| 3 | Price-setting and management | Setting, defending, and raising the actual prices within the structure. |
| 4 | Pricing measurement and optimization | The sustaining layer that keeps pricing sharp over time. |
| Part | Your level (1 to 5) | Dependency order |
|---|---|---|
| Value and cost foundation | 1 | |
| Pricing structure and model | 2 | |
| Price-setting and management | 3 | |
| Pricing measurement and optimization | 4 |
The most common mistake is the reflex to just raise prices (part 3) when the real constraint is not understanding your value (part 1). A price raised without a value story is just a number the customer negotiates back down. Follow the order, not the urge.
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