Figure 1From “What is price adjustment cost? Changing a price changes more than a number”
The synthetic price-adjustment cost ledger
A price change is complete only when the decision, system, communication, customer, exception, and review work are named.
Figure 1The synthetic price-adjustment cost ledger
| ID | Work item | Synthetic effort | Owner | Dependency | Disposition |
|---|---|---|---|---|---|
| C-01 | Cost and value evidence | 6 hours | Pricing | Held data and cutoff | Complete |
| C-02 | Approval and exception rule | 3 hours | Commercial lead | Authority matrix | Complete |
| C-03 | Catalog, billing, and quote update | 8 hours | Systems | Regression test | Held pending test |
| C-04 | Seller and partner communication | 5 hours | Enablement | Message and notice | Complete |
| C-05 | Customer repricing and contract review | 18 hours | Account team | Segment and renewal dates | In progress |
| C-06 | Invoice, pocket-price, and outcome review | 4 hours | Revenue Operations | Later period and actuals | Not yet evaluable |
Swipe or scroll horizontally if the table is wider than your screen.
Source: Author's synthetic price-change worksheet grounded in Zbaracki, Ritson, Levy, Dutta and Bergen (2004) and Simon (2015). Work categories, owners, hours, and dispositions are illustrative, not a cost benchmark.
Source and evidence
Each line names a claim related to this exhibit, its source, and how it was checked.
- A ZRLDB04-C1 "the managerial costs are more than 6 times and customer costs are more than 20 times the menu costs"zbaracki-etal-2004-price-adjustment-costs
- A ZRLDB04-C2 "in total the price adjustment costs comprise 1 22 of the company s revenue and 20 03 of the company s net margin": one firm, one periodzbaracki-etal-2004-price-adjustment-costs
- A G04-C5 The cost types, named: "we identify and measure three types of managerial costs information gathering decision making and communication costs and two types of customer costs communication and negotiation costs"zbaracki-etal-2004-price-adjustment-costs · published full text
- A G04-C6 One firm, and the paper says so: the totals are "1 22 of the company s revenue and 20 03 of the company s net margin": a single U.S. industrial manufacturer, not a benchmarkzbaracki-etal-2004-price-adjustment-costs · published full text
- B T07-OWN-C1 Price adjustment cost is the direct and indirect resource required to change, communicate, implement, govern, and absorb a price changeAuthor framework grounded in ZRLDB04-C1 and G04-C5
- B T07-OWN-C2 A price change can create menu, system, communication, negotiation, customer, channel, and internal process work beyond the new numberAuthor taxonomy
- B T07-OWN-C4 Price stickiness is an observed tendency for prices to adjust less often or less fully than a changing condition might implyAuthor framework grounded in ZRLDB04-C1 and ZRLDB04-C2
- B T07-OWN-C5 A cost of adjustment can be commercially relevant without proving that a price should never changeAuthor negative boundary
Grades: A, verified against the printed page of the primary source · B, primary source, text layer only · C, authoritative secondary · D, reported.
From the essay
Pricing & revenue architecture
What is price adjustment cost? Changing a price changes more than a number
Price adjustment cost includes managerial, customer, system, and communication work. Preserve the change path before calling a price move cheap.
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