B2B discipline 04 of 06
Commercial Model
Make sure growth makes money.
You can be winning deals and still weakening the business. We connect pricing, discounting, customer economics and delivery costs, so every commercial decision strengthens the revenue line, not just enlarges it.
Sound familiar?
Signs you’re winning deals that don’t pay.
- Discounting has become the default way to close.
- Your biggest customers might not be your most profitable.
- Pricing hasn’t been reviewed in years.
- Growth needs more cash than it makes.
What we do
Three areas. One commercial goal.
The goalMake every sale count: prices that hold, and profit you can see by customer.
Pricing & packaging
Set prices on value, design packages that sell up, and put rules around discounting.
What you’re left with- Pricing and packages
- Discount rules in the CRM
- Price-change plan
Revenue model
Shape how you earn, whether recurring, usage-based, services or a mix, and how it scales.
What you’re left with- Revenue model
- Contract and renewal terms
- Revenue mix plan
Growth economics
Know your real profit by customer, product and channel, and what it costs to grow.
What you’re left with- Customer profitability view
- Unit economics model
- Growth scenarios
The question we’d answer first
Data on its own can mislead. Context shows what to do.
One question we’d bring to Commercial Model straight away, answered twice: with one system’s data, then with the rest of the business joined in. Figures are illustrative.
04 · Commercial Model
Which revenue is actually profitable?
Revenue by customer, last 12 months
Looks likeYour biggest accounts are your best.
Contribution by customer, after discounts and delivery, 12 months
ActuallyThree major accounts are buying growth at the expense of your margin.
Reprice or rescope the three accounts at renewal, and give sales value-based discount rules.
How it works
We don’t hand you a strategy. We get in and do the work.
Diagnose
Work out real profit by customer, product and deal.
Prioritise
Find the discounts, prices and accounts that cost the most.
Do the work
Reprice, repackage and set discount rules with sales.
Embed
Track margin by customer every month, in your own tools.
What changes
- Every account earning its place, and repriced at renewal if not.
- Prices that hold in negotiation.
- A growth plan the numbers support.
Start with a conversation
Find the constraint. Build the plan. Do the work.
Whether it’s Commercial Model or somewhere else in the system, finding the real constraint is the first thing we do.