Pricing Consultants: The Strategic Partners Driving PE Portfolio Value

The Hidden Power of Pricing Excellence

Pricing consultants have an outsized effect on driving value creation. During normal economic times, a 1% pricing improvement typically delivers about a 12.5% improvement in profit. In challenging economic conditions, this impact can be even more dramatic, with pricing improvements potentially delivering 20-25% profit increases when margins are compressed, according to research from Pricing Solutions.

Despite this outsized impact, many PE portfolio companies struggle with pricing. They often rely on outdated cost-plus models, fail to capture the full value they deliver to customers, or lack the sophisticated pricing infrastructure needed to compete effectively. This is where pricing consultants step in, bringing specialized expertise that can unlock significant value.

What Pricing Consultants Bring to the Table

1. Value-Based Pricing Transformation

Traditional pricing approaches often leave money on the table. Pricing consultants help companies shift from cost-based or competitive pricing to value-based models that capture the true worth of their offerings. With value-based pricing, you charge based on the value and ROI you create for your client as a result of the project, as explained in Consulting Success’s comprehensive guide.

This transformation requires deep customer insight and sophisticated analysis. Pricing consultants conduct extensive market research, customer interviews, and conjoint analysis to understand exactly how customers perceive and quantify value. They then translate these insights into pricing structures that align price with value delivery.

2. Data-Driven Price Optimization

Modern pricing consultants leverage advanced analytics and machine learning to optimize pricing at a granular level. They analyze transaction data, customer behavior patterns, and market dynamics to identify opportunities for price improvement across products, customer segments, and channels.

This data-driven approach goes beyond simple price increases. It involves sophisticated segmentation strategies, dynamic pricing models, and price elasticity analysis that ensure companies capture maximum value while maintaining competitive positioning.

3. Pricing Infrastructure Development

Many portfolio companies lack the systems, processes, and governance structures needed for pricing excellence. Pricing consultants help build this critical infrastructure, including:

• Pricing analytics platforms that provide real-time visibility into pricing performance
• Deal desk processes that ensure consistent and profitable pricing decisions
• Escalation frameworks that balance sales flexibility with margin protection
• Performance dashboards that track key pricing metrics and identify improvement opportunities

4. Sales Enablement and Value Communication

Even the best pricing strategy fails without proper execution. The sales force has to communicate the price/value proposition of the company and sharing the pricing research with them is a critical step in building their confidence in the overall pricing strategy, as noted by ROI Selling experts.

Pricing consultants work closely with sales teams to develop value selling tools, negotiation frameworks, and competitive positioning strategies. They create compelling value propositions that justify premium pricing and train sales teams to confidently articulate these messages to customers.

The PE Context: Why Pricing Consultants Matter More Than Ever

Accelerated Value Creation Timelines

Private equity firms typically operate on 3-5 year investment horizons, requiring rapid value creation. ECA’s on-demand pricing consultants advise private equity firms by helping clients maximize value throughout the investment lifecycle. Pricing improvements can deliver results within months, not years, making them ideal for PE timelines.

Portfolio-Wide Impact

Leading PE firms increasingly recognize that pricing excellence can be scaled across their portfolios. By partnering with pricing consultants, they develop playbooks and best practices that can be applied to multiple portfolio companies, multiplying the impact of their investment.

Exit Value Maximization

Strong pricing capabilities enhance exit multiples. Potential buyers value companies with sophisticated pricing infrastructure, clear value propositions, and demonstrated pricing power. Pricing consultants help portfolio companies build these capabilities, directly impacting exit valuations.

Selecting the Right Pricing Consultant

Not all pricing consultants are created equal. When evaluating potential partners, PE firms and portfolio companies should consider:

1. Industry Expertise

Look for consultants with deep experience in your specific industry. They should understand the unique pricing dynamics, customer buying behaviors, and competitive landscapes that shape your market.

2. Implementation Track Record

Theory without execution delivers no value. The best pricing consultants combine strategic insight with hands-on implementation support. According to Consulting Success’s fee study, consultants earning $45K+ per month have a much higher average consulting engagement value, with over 50% of them putting their average consulting engagement value at $50K+, reflecting the high value placed on consultants who deliver tangible results.

3. Analytical Capabilities

Modern pricing requires sophisticated analytics. Ensure your pricing consultant has strong data science capabilities and can build the analytical infrastructure needed for ongoing price optimization.

4. Change Management Expertise

Pricing transformations often require significant organizational change. Look for consultants who understand the human side of pricing and can help navigate the cultural shifts required for success.

The ROI of Pricing Consulting

The returns from effective pricing consulting can be extraordinary. Companies typically see a median ROI of 7 times their initial investment in coaching. For pricing specifically, the returns often exceed even these impressive benchmarks.

Consider a typical engagement: A $100 million revenue portfolio company engages a pricing consultant for a $500,000 project. If the consultant delivers just a 2% price improvement—conservative by industry standards—that translates to $2 million in additional annual revenue, most of which flows directly to the bottom line. Over a typical PE hold period, the cumulative impact can reach tens of millions of dollars.

The Future of Pricing in Private Equity

As PE competition intensifies and traditional cost-cutting approaches reach their limits, pricing will become an even more critical value creation lever. Forward-thinking PE firms are already making pricing excellence a core competency, partnering with specialized consultants to build portfolio-wide pricing capabilities.

The integration of artificial intelligence and machine learning will further enhance pricing sophistication, enabling real-time optimization and predictive pricing strategies. Pricing consultants who combine traditional expertise with these emerging technologies will be invaluable partners in the PE ecosystem.

Taking Action

For PE firms and portfolio companies serious about pricing excellence, the path forward is clear:

1. Assess your current pricing maturity across the portfolio
2. Identify companies with the greatest pricing improvement potential
3. Engage experienced pricing consultants for pilot projects
4. Scale successful approaches across the portfolio
5. Build internal capabilities for sustained excellence

In an environment where every basis point of performance matters, pricing consultants offer a proven path to value creation. By transforming how portfolio companies price, position, and sell their offerings, these specialized advisors help PE firms achieve the exceptional returns their investors demand.

The question isn’t whether to invest in pricing excellence—it’s how quickly you can capture the value waiting to be unlocked. Get in touch with our team today to learn more about ECA’s network of on-demand pricing consultants.

Evan Metzger is a Project Manager at ECA Partners. He can be reached at [email protected].