What should a CFO pricing-model project deliver?

Before hiring a CFO to build a pricing model, specify what management is deciding. A new package, a price increase for existing customers, a discount policy and a tender each have different constraints. State the products, customer groups, currencies and time period in scope. Identify who can approve a new price and when that decision is needed.

Give the adviser the current price list, realized sales, discount records and the available cost data. Explain which figures are dependable and which require investigation. Agree whether the project includes reconstructing costs or starts only after your accountant supplies a reviewed dataset. Otherwise the first invoice can buy data cleanup while management expects a recommendation.

The model should distinguish costs that vary with the proposed sales from costs that remain over the decision period. Ask how it handles payment fees, returns, fulfillment, support and capacity limits where those affect the offer. A fixed allocation used for financial reporting may answer a different question from the extra cost of accepting one more order.

The SBA's break-even calculator relates fixed costs to price less variable cost per unit. Use that as a basic calculation to inspect, while recognizing that multiple products, discounts and capacity changes can require a more detailed model. Ask the adviser to explain the assumptions rather than presenting one break-even output as a complete pricing decision.

Agree a small set of acceptance checks before the build. The table below describes useful project outputs; it is a proposed buying checklist, not a professional standard. Adapt the checks to the actual commercial decision and assign someone inside the company to perform them.

The adviser cannot establish future demand simply by building a spreadsheet. Require separate assumptions for volume response, customer retention and the timing of a change. If the business has evidence from a prior price test, identify its period and limits. Where evidence is missing, compare plausible scenarios and agree what observation would justify changing the plan.

Keep the recommendation separate from authorization to change billing or customer terms. Name the commercial owner who will check contracts, customer communications and implementation. If a pilot is appropriate, define the group, observation period and review criteria before interpreting results. Do not let the model silently assume that every customer accepts the new offer immediately.

Specify whether the fee includes a handover session and a review after actual sales arrive. That meeting should explain differences in price, volume, mix and costs, using the same definitions as the original model. It can reveal a data issue or a changed business condition without requiring the team to rebuild the entire project.

ICAEW's spreadsheet guidance recommends documentation suited to the users and clear inputs, calculations and outputs. In a pricing engagement, make those expectations concrete: obtain the editable model, a short input guide, the approved version and the responsibility for future changes. Resolve proprietary templates or software-license restrictions before accepting the proposal.