We recently interviewed Jenny Millar from Untapped Pricing for our Value Drivers Interview Series. If you missed it you can catch the full episode here, but here are some of the key takeaways about why pricing is so critical (and so often overlooked) when it comes to increasing value. 

When founders think about growing the value of their business, they often focus on revenue growth, cost reduction, acquisitions, or new product launches. But in our recent Value Builders masterclass, Jenny Millar shared a different perspective, Pricing is one of the most powerful, and most underused levers for increasing enterprise value.

If you’re building a business with future optionality in mind, whether that’s sale, investment, or simply greater resilience, pricing deserves far more strategic attention than it typically receives.

Pricing Matters More Than You Think

Most business owners treat pricing as tactical:

• Set it once.
• Review it occasionally.
• Adjust when margins feel tight.

Buyers and investors, however, see pricing very differently.

They view it as a signal of:

• Commercial discipline
• Market positioning
• Margin quality
• Customer value perception
• Leadership confidence
  

Pricing tells a story about how well you understand your market, and how much control you really have over your economics.

The Compounding Effect on Valuation

Small improvements in pricing can have a disproportionate impact on valuation.

For example, a 1–2% increase in price, implemented thoughtfully, often flows directly to the bottom line. Unlike revenue growth that requires additional sales effort, marketing spend, or operational scale, pricing improvements frequently enhance profitability without increasing complexity.

And because businesses are valued on multiples of profit, every improvement to EBITDA is magnified.

For example:

• £200k additional EBITDA
• At a 6x multiple
• = £1.2m increase in enterprise value
  

Put simply, pricing is one of the fastest routes to improving EBITDA without adding risk.

What Buyers Look For

When investors assess a business, they don’t just look at turnover. They assess the quality and durability of revenue.

From a pricing perspective, they want to see:

• Clear pricing architecture (not ad hoc discounting)
• Defined value propositions at each price tier
• Evidence of pricing discipline
• Strong gross margins
• Ability to pass on cost increases
• Data-led pricing decisions rather than instinct
  

If pricing appears inconsistent, overly reactive, or heavily discount-driven, it raises questions. And buyers price risk. A well-structured pricing model, on the other hand, signals confidence, clarity, and commercial maturity.

Common Pricing Mistakes Founders Make

Jenny highlighted several patterns she regularly sees in founder-led businesses:

1. Underpricing Due to Imposter Syndrome

Many founders price based on what feels “safe” rather than what reflects value. Confidence and pricing are closely linked.

2. Competing on Price Instead of Value

Discounting becomes the default growth lever, eroding margins and weakening positioning.

3. Failing to Evolve Pricing as the Business Matures

As businesses grow, their capabilities and impact increase, but pricing often remains anchored in earlier stages.

4. Overcomplicating the Model

Too many SKUs, unclear tiers, or inconsistent commercial terms create confusion internally and externally. All of these dilute value, not just operationally, but strategically.

Pricing as a Strategic Discipline

Pricing isn’t about charging more for the sake of it. It’s about aligning price with value.

That requires:

• Clear customer segmentation
• Deep understanding of the problems you solve
• Confidence in your differentiation
• Strong internal governance around commercial decisions

When pricing is embedded as a board-level conversation rather than a sales-level adjustment, it becomes a strategic asset.

And strategic assets drive valuation.

Pricing and Perceived Risk

Ultimately, valuation is a function of two things:

1. Profit
2. Risk
   

Strong pricing discipline improves both.

It increases profitability while reducing perceived commercial risk. Buyers gain confidence that margins are sustainable and that leadership understands the value exchange with customers.

In that sense, pricing is not just a financial lever, it’s a governance lever.

At Implicit, we talk about building businesses in a state of “perpetual readiness.” That doesn’t mean preparing to sell tomorrow. It means building strength into the fundamentals.

Pricing is one of those fundamentals. When treated strategically, it can:

• Increase EBITDA
• Improve valuation multiples
• Strengthen competitive positioning
• Create resilience in volatile markets
• Enhance confidence at board level
  

In short, better pricing doesn’t just increase revenue; it increases enterprise value. Many founders wait until they’re considering a sale to think about valuation. But valuation is built years in advance. If you want optionality, whether to scale, step back, or sell, pricing is one of the most immediate and controllable levers available to you.

The question isn’t: Are we charging enough? It’s: Does our pricing reflect the true value we create, and the future we’re building?

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