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Process

Pricing power diligence in three weeks

Counted back from the investment committee

Process showing a three-week pricing power diligence timeline, from writing the price assumption at T-21 to the one-page pricing memo at T-2
Three weeks back from the investment committee

A seven-step plan for testing the price increases in an acquisition model before the investment committee. It covers agreeing customer access with the seller, building one study for current customers and one for blind category buyers, fieldwork, weighting answers by revenue and writing a one-page pricing memo. Koji runs both studies, including the price test, and produces the reports the memo draws on.

Where this appears

What's in this process

  1. T-21: Write the assumption, agree access: One sentence for the price line. Agree with the seller and counsel who contacts customers and what the invitation says.
  2. T-18: Build both studies and pilot: One study for current customers, one for blind category buyers. Preview each, then run five pilot interviews.
  3. T-15: Launch: The seller sends current-customer invitations from a known address. Start category buyer recruitment the same day.
  4. T-10: Chase: One reminder per person. Check quotas by price tier and top up the thin ones.
  5. T-6: Close fieldwork: Stop inviting. Every top-10 account should have two completed contacts.
  6. T-5: Read and weight: Cut current-customer answers by count and by share of ARR. Read the price curve and the reasons behind it.
  7. T-2: Write the pricing memo: One page: the assumption, the verdict, the curve, the revenue-weighted renewal answers and five quotes.

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Free to use in your docs, decks and posts under CC BY 4.0, as long as you credit Koji with a link to this page. To embed it, paste this into your page:

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<a href="https://www.koji.so/visuals/pricing-power-diligence-timeline"><img src="https://www.koji.so/visuals/pricing-power-diligence-timeline/pricing-power-diligence-timeline.png" alt="Process showing a three-week pricing power diligence timeline, from writing the price assumption at T-21 to the one-page pricing memo at T-2" width="1080" height="1350" /></a>
<p>Source: <a href="https://www.koji.so/visuals/pricing-power-diligence-timeline">Pricing power diligence in three weeks</a>, Koji</p>