Margin leakage through pricing is the single most recoverable value gap in most industrial businesses. This diagnostic identifies exactly where the leakage is occurring and quantifies the EBITDA impact.
Run the Diagnostic ↓Most businesses approve pricing initiatives that never fully land in the P&L. Discounting at the point of sale, retroactive rebates, freight recovery gaps and execution failures quietly absorb 30–60% of every price increase before it reaches EBITDA.
This diagnostic models your price waterfall to quantify exactly how much margin is leaking — and which lever is causing the most damage.
Discounts given at the point of sale in excess of approved thresholds, or without formal commercial approval. Typically 3–7% of revenue in businesses without structured pricing governance.
Retrospective rebate agreements that have drifted from their original commercial logic — paying out regardless of the customer behaviour they were designed to incentivise.
Freight cost recovery gaps, cost pass-through failures and implementation losses — approved price increases that are never converted to invoice.
Pricing discipline is built through commercial infrastructure — policies, data, governance and capability — not through training or motivation. The businesses that consistently capture top-quartile margins have structural controls that make leakage visible and accountability clear.
The diagnostic identifies the gap. The mandate embeds pricing discipline — and moves EBITDA.
Discuss a MandatePricing architecture refers to the commercial infrastructure that governs how prices are set, approved, implemented and monitored across customers, products and channels. Without this infrastructure, margin leakage accumulates across every transaction.
In industrial distribution and manufacturing businesses operating without structured pricing governance, leakage of 6–15% of gross margin is common. At a 6× EBITDA multiple, recovering 3 percentage points of margin on a $50M revenue business creates $9M of enterprise value — without any increase in volume or headcount.