The most dangerous threat to profitability isn’t a market crash but the silent erosion of margin from a flawed pricing structure. Most companies unknowingly lose over half of their intended price increases to a "leaky waterfall" of unchecked discounts, rebates, and ad-hoc sales overrides. This article provides a blueprint for building a data-driven, value-based pricing engine to plug these leaks and transform pricing into your most powerful lever for growth.

While companies obsess over list price, our research shows the average business systematically dismantles its own profitability from within. The real battle is won or lost in the price waterfall—the chasm between list price and the final pocket price where discounts, rebates, and allowances silently erode margin. Achieving optimal net price realization requires moving beyond siloed commercial psychology and spreadsheet chaos to a unified strategy that stops profit leakage at its source. This guide provides the framework to reclaim that lost margin by focusing on the one number that truly matters: your True Net Price.