The pricing lifecycle is made up of six interconnected stagesāfrom strategy to analysisāeach with its own focus, changes, and key players.
Together, these stages form a loop, ensuring that pricing decisions are consistent, data-driven, and continuously improving.
Strategize
In this stage, you define or adjust your pricing strategy to align with business goals (cost pass-through, margin targets).
What changes?
The strategy itself
Who are the key players?
Pricing
Finance
Executives
Manage
Control price and cost drivers by maintaining lists, applying cost updates, and enforcing governance.
What changes?
Structure and governance of price data
Who are the key players?
Pricing
Finance
IT/Operations
Optimize
Apply strategy through segmentation and scenario modeling to set prices and discount thresholds.
What changes?
Values in the strategy, such as lists, discounts, passthrough percentage
Who are the key players?
Pricing (primary)
Marketing
Sales
Deliver
Operationalize optimized values in ERP, CPQ, and eCommerce systems
What changes?
System data and channels
Who are the key players?
Pricing
IT/Operations
Sales begins to feel the impact.
Influence
Equip Sales with guidance, guardrails, and messaging to ensure adoption.
What changes?
Seller behavior and customer conversations
Who are the key players?
Sales (primary)
Pricing
Analyze
Measure performance, track adoption, and inform the next strategy cycle.
What changes?
Performance metrics and insights
Who are the key players?
Pricing
Finance
Sales and Executives consume insights.
Pricing waterfall + pricing lifecycle
Together, the pricing waterfall and pricing lifecycle offer the complete pricing picture.
