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Pricing Strategy Handbook
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CH06 MN06→MN07 Transition Checklist

Answer in the Worksheet Writer and save as Markdown

This worksheet is based on KM053 (The Three Financial Lenses) and KM054 (From Price to Business Feasibility). Before moving to the next step (Part II, MN07: Business Feasibility / Serviceable Market Estimation), fill in the items below to check yourself.

Part A. Revisiting the Business Through the Three Financial Lenses (KM053)

1. P&L View

  • Price:
  • Sales Volume:
  • Cost of Goods:
  • SG&A:
  • Margin:
  • (If judging the business’s attractiveness by this structure alone, what risk would you be missing?)

2. Asset Value View

  • Are there assets accumulating through this business? (Yes/No — if yes, what?)
  • Beyond current-period operating profit, is there economic meaning explained by asset value appreciation or eventual sale?

3. Cash Flow View

  • Point of revenue recognition:
  • Point of actual cash inflow:
  • Is there a gap between the two points? (Yes/No — if yes, is there potential funding pressure?)
  • Is there a structure where funds are held for a period (e.g., pending payment settlement)?

4. Synthesis

  • Viewing the P&L, Asset Value, and Cash Flow lenses together, where is this business’s economic value mainly being created?

Part B. Three Inputs for Moving to Business Feasibility (KM054)

To move to the next step, you must be able to explain each of the three items below. For any item you cannot yet explain, address it and check again.

1. Price P Grounded in the Customer and the Value They Recognize

  • What cost structure does this price assume?
  • What value do customers recognize that makes them accept this price?
  • How do competition, channel, and customer relationships change this price and margin?
  • Explainable / [ ] Needs Work

2. Cost and Margin Structure

  • What cost/margin structure makes the business sustainable at this price?
  • Explainable / [ ] Needs Work

3. Revenue Model

  • What do customers pay for, and how?
  • Explainable / [ ] Needs Work

Part C. Transition Verdict

  • Are all three of the above (Price P / Cost & Margin Structure / Revenue Model) “Explainable”?
    • Yes → Ready to proceed to Part II (Business Feasibility, MN07: Projected P&L, QCD, Serviceable Market, B2C/B2B/B2G Market Sizing)
    • No → Too early to move on to market sizing. Items needing work:

Source Map

  • MN: MN06
  • KM: KM053, KM054