The Hidden Cost of Poor Pricing Strategy: Why Your Next Hire Matters More Than You Think
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Poor pricing strategy costs mid-market firms millions. Discover why hiring a pricing leader is the smartest investment you can make.
In today's volatile market, pricing isn't just a number on a spreadsheet — it's a strategic growth lever. For mid-market companies in particular, where margins are tighter and resources leaner, pricing can determine whether you're leading the market or losing ground.
And yet, pricing is often overlooked. A 2023 Deloitte survey found that over 60% of mid-market firms lack a dedicated pricing function, often pushing this responsibility onto sales, finance, or operations. The cost of this oversight? Potentially millions in lost revenue and margin erosion.
The Financial Impact of Poor Pricing
Mispricing products or services is one of the most expensive — and avoidable — mistakes a business can make:
- A McKinsey report found that a 1% price increase, if executed properly, results in an average 11.1% boost in operating profit — far greater than a 1% increase in volume or cost reduction.
- Simon-Kucher & Partners reports that nearly 80% of companies leave pricing decisions to sales teams, resulting in inconsistent discounts and profit leakage.
Underpricing reduces perceived value and leaves money on the table. Overpricing damages win rates, customer satisfaction, and brand equity. Without a dedicated leader to manage pricing strategically, companies are at the mercy of gut decisions and reactive discounting.
The Opportunity Cost of Inaction
Mid-market businesses often operate with lean teams and limited analytical horsepower. But treating pricing as a back-office afterthought means you're missing out on critical levers:
- Margin optimization through segmentation and willingness-to-pay modeling
- Revenue acceleration by aligning pricing with customer value
- Strategic differentiation through bundling, tiering, and value-based pricing
Failing to invest in pricing is like building a high-performance car with no one at the wheel.
What a Great Pricing Leader Brings
Hiring a Head of Pricing — or even a Senior Pricing Manager — is a high-ROI investment. The right person can:
- Develop and implement value-based pricing models
- Introduce governance around discounting and deal reviews
- Collaborate with product, sales, and finance to align strategy
- Utilize pricing software (e.g., PROS, Zilliant, Pricefx) to drive analytics and automation
- Influence organizational culture toward pricing discipline
This isn’t just about pricing — it’s about commercial strategy. Pricing leaders often report into the Chief Revenue Officer or CFO and work cross-functionally to shape go-to-market execution.
Mid-Market Case Example
Take the case of a $50M revenue B2B tech company that engaged Jennings Executive Search to find their first pricing leader. Within 12 months:
- Gross margins improved by 4.2%
- Deal win rates rose by 9%
- Discounting thresholds were formalized, saving an estimated $1.1M annually
That’s the power of a strategic hire.
The Talent Gap in Pricing
Despite the clear impact, pricing leaders remain in short supply. According to LinkedIn Talent Insights (2024):
- There are fewer than 9,000 professionals in the U.S. with “pricing strategy” and “leadership” in their profiles
- Top-tier talent is highly concentrated in sectors like industrials, SaaS, and private equity portfolios
Finding someone who combines data fluency, strategic thinking, and change leadership is tough — and competitive.
Partner With a Specialized Search Firm
Pricing strategy isn’t a plug-and-play discipline — it’s highly nuanced, deeply commercial, and vital to performance. For mid-market companies, hiring the right leader can define the difference between plateauing and breaking through.
At Jennings Executive Search, we’ve helped build pricing teams for growth-stage businesses, private equity portfolios, and commercial leaders in transition. Our candidates don’t just fill roles — they expand margin, accelerate revenue, and align your pricing model with business strategy.
Let’s connect and discuss how strategic hiring can future-proof your pricing function.
Contact Jennings Executive Search — the premier recruitment firm for pricing strategy and commercial leadership.
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