Halcyon Bank (retail banking, UK) has not changed prices in three years while input costs have risen steadily. The CFO wants a 16% price increase across the board.
Current position.
Customer mix. Roughly 24% of revenue comes from large enterprise accounts on annual contracts with procurement teams; the remainder comes from smaller customers who buy on shorter cycles and switch more readily.
The Head of Sales is opposed, warning of "customer revolt". The CFO points out that margins have fallen every year since the last increase.
Advise on pricing. Provide:
100 points, 60% to pass.