Inside the Strategy Room 281. Pricing to create value across the private equity portfolio
Dec 11, 2025
Join Brian Elliott, a senior partner at McKinsey and pricing expert, and Michelle Nguyen, an associate partner specializing in private equity, as they explore how nuanced pricing strategies can unlock value in diverse portfolios. They discuss the reluctance of companies to raise prices, strategies for communicating price increases effectively, and the role of AI in transforming pricing dynamics. The conversation highlights the importance of a coordinated approach and informs listeners about practical steps for implementing effective pricing tactics in private equity.
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Small Price Moves, Big Profit Gains
- A 1% increase in price can flow nearly fully to EBITDA, producing outsized profitability gains.
- Small price moves often beat larger cost or volume efforts for value creation.
Win Rates Often Don't Track Discounts
- Price changes don't always change win rates; many deals show similar win rates across discounted tiers.
- Identifying pockets where price doesn't drive win probability reveals opportunities to raise prices safely.
Explain Price Rises Through Value
- Explain price increases by comparing your value vs the next-best alternative and quantify impact where possible.
- Avoid only using cost-based arguments because customers will push back when costs fall.