S2E9 – Your Pricing Strategy Is Only as Strong as Your Sales Team’s Ability to Execute

Summary

Pricing strategies often look strong in a spreadsheet and struggle in the market. In this episode of The Pricing Guys, Avy Punwasee and Michael Stanisz speak with John Shulman of Alignor about the gap between pricing recommendations and frontline execution. The discussion focuses on sales alignment, negotiation, customer risk, and the practical work needed to…

Key takeaways

  • A pricing model is only effective when sales and account teams can execute it with customers.
  • The numbers may explain roughly 30% of the situation. Relationships, risk, customer expectations, and sales capability often make up the other 70%.
  • Sales should be involved early, but collaboration does not mean every team will welcome the final decision.
  • Frontline teams need practical negotiation tools, customer-specific plans, and a clear explanation of why the change is necessary.
  • Progress should be measured through financial results, customer outcomes, immediate application, and stronger cooperation between pricing and sales.

Why good pricing strategies stall

John shared a common example: a global manufacturer had completed a broad pricing and commercial strategy project during a period of economic and industry pressure. Senior leadership had approved the direction. The difficult part came when the company prepared to roll it out.

The sales organization pushed back. Team members felt they had not been consulted and believed the new approach could create problems with customers, existing contracts, and upcoming renewals.

This reaction is not unusual. Pricing teams typically focus on market data, financial targets, customer segments, and the changes needed to improve performance. Sales teams are responsible for taking those changes into real conversations. They have to manage relationships, customer expectations, internal politics, and the risk of losing business.

That is why a recommendation can be commercially sound and still be difficult to implement.

For pricing leaders, including the teams supported by Revenue Management Labs, this is a central point: strategy and execution cannot be treated as separate workstreams. A customized pricing strategy needs to reflect not only the data, but also the company’s sales model, customer base, capabilities, and ability to adopt change.

The 30/70 rule in pricing execution

The discussion described pricing as only about 30% numbers and 70% customer and organizational context. The exact split will vary by business, but the broader idea matters.

The data can show:

  • Where margins are under pressure
  • Which products or customers may be underpriced
  • How market conditions have changed
  • What financial improvement may be possible

But data alone usually cannot answer questions such as:

  • How will a specific customer respond?
  • Which stakeholders need to be involved?
  • What does the account manager believe is at risk?
  • How much change can the customer absorb at one time?
  • What can the sales team confidently defend in a negotiation?

AI can help pricing teams analyze patterns faster and identify opportunities. It does not replace the judgment of pricing practitioners or the customer knowledge held by sales teams. The strongest approach combines embedded pricing intelligence with experienced, cross-functional decision-making.

Bring sales into the conversation early

Early involvement does not mean sales gets to rewrite the pricing strategy. It means the organization has a better chance to identify execution risks before the rollout.

A practical process includes:

  1. Explain the business case. Pricing and senior leaders should clearly outline the commercial problem, expected benefits, and urgency.
  2. Invite specific objections. Sales teams should be able to raise concerns about customer contracts, renewal timing, competitive pressure, and account history.
  3. Separate the strategy from the tactics. The overall pricing model may remain intact while the business adapts how it introduces the change to different customers.
  4. Agree on ownership. Everyone should understand what pricing, marketing, sales, and leadership are responsible for during implementation.
  5. Create a feedback loop. Insights from the field should inform adjustments without allowing every objection to derail the broader plan.

Revenue Management Labs takes a similar hands-on view of implementation. Recommendations need to fit the client’s industry, data, team structure, and commercial reality. The work is not finished when the analysis is delivered.

Give account teams practical tools

Leadership alignment is helpful, but it does not automatically translate into frontline adoption. Account managers may still have concerns about the change or assumptions about what customers will accept.

The solution is to work directly with those teams. John described using a simple framework based on interest-based negotiation, then adapting it to the language and situations that sales professionals actually face.

Useful support can include:

  • Customer-by-customer negotiation plans
  • Stakeholder maps showing who may influence the decision
  • Clear messages explaining the value behind the price change
  • Role-play for likely customer objections
  • Guidance on sequencing conversations
  • Options for managing transition risks without weakening the core price strategy

This is where generic playbooks often fall short. A manufacturer, software provider, healthcare company, or business services firm will face different customer economics and negotiation dynamics. Tools should be customized to the situation rather than handed over as a standard package.

Handle resistance without losing momentum

The “why” matters. If sales teams do not understand why a change is needed, they may resist it even when they have strong negotiation tools.

Pricing and sales should meet in a structured, open discussion. Sales needs a chance to explain what the pricing analysis may have missed. Pricing needs to explain the financial and market evidence behind the recommendation.

That conversation may uncover real risks. A certain customer may need a phased transition. A renewal may need to be addressed before a broader contract change. A different stakeholder may need to be brought into the discussion.

These adjustments do not necessarily weaken the pricing strategy. They can make it more workable. The goal is to preserve the economic intent while giving the sales team enough flexibility to manage customer-specific conditions.

Measure adoption as well as results

A successful rollout should be measured through both financial outcomes and organizational behavior. Useful indicators include:

AreaWhat to monitor
Financial performanceRevenue, margin, price realization, and progress against targets
Customer executionAcceptance of new pricing, renewal outcomes, and risks avoided
Field adoptionWhether account teams are using the agreed plans in live conversations
CollaborationTrust, meeting quality, and the ability of pricing and sales to solve issues together

Some results appear quickly. A sales professional may use a new approach in a customer meeting the same week and report a better outcome. Other changes take longer, such as rebuilding trust between pricing and sales.

Senior leaders should look for both types of evidence. Short-term results show whether the plan is working in the market. Longer-term collaboration shows whether the organization is building a repeatable pricing capability.

The main lesson for pricing leaders

A pricing strategy is only as strong as the sales or account management team’s ability to execute it. The best path is to involve sales early, listen to practical concerns, and provide a clear framework for customer conversations.

At the same time, collaboration should not become a reason to avoid necessary decisions. Strong pricing leadership sets the direction, uses data and AI-supported analysis intelligently, and then works with commercial teams to make the change practical.

That combination—customized strategy, practitioner expertise, and hands-on adoption support—is what turns pricing recommendations into measurable, lasting growth.