Interventions

Pricing as a structural lever: segmentation, value and governance to defend margins

by Francesco Fiorese*

4 May 2026

3' min read

Translated by AI

Versione italiana

3' min read

Translated by AI

Versione italiana

In the current inflationary and geopolitical context, many companies are gradually reducing their focus on pricing as a strategic lever, reverting to more traditional volume- and discount-oriented logics. This is an understandable but risky reaction.

The evidence gathered by Simon-Kucher clearly shows how this has a direct impact on value creation. More than 70 per cent of the companies implemented price increases in the two-year period 2022-2023, but less than 40 per cent managed to keep them stable over time.

A 1% change in price generates, on average, a 6% to 12% impact on EBIT, higher than any other business lever. Despite this, more than 50% of companies still do not have a structured pricing function or formalised processes.

In this scenario, treating pricing as an emergency lever exposes margins to progressive erosion. The issue today is no longer 'whether' to intervene on prices, but 'how' to govern them systematically.

Customer segmentation: from analytical exercise to monetisation lever

In many companies, profoundly different customers coexist in terms of price sensitivity, value generated, purchasing behaviour and willingness to recognise a premium.

Applying uniform conditions means, in effect, leaving margin on the table. Our analyses indicate that advanced segmentation models can generate +2-4 percentage points of margin through targeted differentiation, as well as a reduction of 'unnecessary' discounts by up to 20-30%.

The point is not to segment 'more', but to segment better, identifying the real drivers of willingness-to-pay: price-driven vs. value-driven customers; continuity of supply vs. cost optimisation; standardisation vs. customisation.

Segmentation and pricing must be designed together. Without robust segmentation, any price differentiation remains arbitrary; with effective segmentation, pricing becomes a positioning lever as well as a margin lever.

Price and perceived value: the true competitive playing field

The current phase marks a structural change: the customer no longer accepts 'cost-based' increases as in the past.

According to our recent research, more than 60 per cent of B2B customers say they now question increases over the period 2021-2022, and only 30-40 per cent of companies are able to clearly articulate the economic value generated for the customer.

This creates a critical gap.

When value is not made explicit, price becomes the only decision driver; negotiation shifts to discounting and conditions and positioning weakens.

Conversely, companies that structure effective value communication increase price realisation by 2-5% and reduce the negotiating pressure on the sales force.

It is therefore not enough to 'have value', it must be made visible, measurable and defensible.

Pricing is not just a numerical decision, but an exercise in translating value into price.

Governance: from tactical pricing to organisational capability

The third element is governance.

Even today, in many organisations pricing is delegated to the sales force, decisions are reactive and uncoordinated, and visibility on margins and price dispersion is lacking.

The most advanced companies are making a quantum leap. They introduce dedicated pricing functions, use analytics and price setting tools, and define clear guardrails and delegation logics.

The results are tangible. Firstly, an improvement in price consistency of up to 50 per cent and then an increase in marginality without impacting volumes. For the fabric of Italia, especially SMEs, this is the real point of discontinuity: we do not need complexity, but discipline and process.

In a context where volume growth is uncertain and demand more selective, pricing becomes the most powerful - and at the same time most under-utilised - lever.

Returning to discount and volume logic may generate benefits in the short term, but it erodes margins, weakens positioning and reduces the future ability to monetise value.

The companies that are performing best have made a clear choice:

treat pricing as a permanent strategic competence, built on three pillars: solid segmentation, explicit value and structured governance.

Pricing is no longer an emergency lever.

It is a key capability that can define the future of a company.

(*)Partner, Simon-Kucher & Partners