Lykov Online · pricing & margin recovery

You know what you quoted. Do you know what you kept?

Three days reading your own quotes and order confirmations. One number at the end of it: what your orders actually earned, after the freight you absorbed, the commissioning days you threw in and the ninety-day terms you agreed to.

For machine builders and technical manufacturers · 50–250 people · Netherlands, Belgium, Nordics

Your 2027 price list is set in the next few weeks. It starts from this year's numbers.

Every firm knows its list price. Most know its invoice price. Almost nobody knows what the order earned.

The gap is not one big discount. It is nine small ones, and most of them never reach the invoice, which is why your accountant has never reported them. They are not hiding. They are just filed somewhere else.

In the quotation

The volume discount and the one you gave to win it. Visible, on the document, and usually the half everyone argues about.

In the last call before signature

Two commissioning days. A longer warranty. The expedite surcharge nobody applied. None of it written down as a price concession, all of it price.

In the parts invoice

Spares billed at the machine discount instead of the parts list, quietly, for the whole life of the installed base.

In December

The same configuration priced one way in May and another way in week 51. Your customers noticed that pattern years before you did.

The ten places it hides

This is the list I work through. Every one of them is recoverable from documents you already have.

  1. A discount agreed years ago to protect a distributor's margin, never revisited after their costs changed
  2. Freight and delivery absorbed on orders below your own free-delivery threshold
  3. Installation and commissioning days conceded in the final negotiation and never invoiced
  4. Warranty extensions agreed verbally and never priced
  5. Payment terms stretched to sixty or ninety days with no adjustment to the price
  6. Rush and expedite surcharges waived as a goodwill gesture
  7. Spare parts and consumables invoiced at the equipment discount instead of at parts list
  8. The annual increase that reached new accounts and quietly skipped the ones you have had since 2014
  9. Quotations honoured after their expiry date because the customer came back late
  10. Currency movement absorbed on non-euro orders instead of passed through

Items seven, eight and nine are usually the fastest money in the room. They need no renegotiation, no difficult conversation, and no customer notices anything change — you simply start applying a policy you already wrote.

What the answer looks like

Indexed to list price = 100, so orders of different sizes sit on the same scale. The visible discounts take 13.5 points. A further 8.8 points disappear after the invoice, where nothing in the ledger is looking.

One configured-equipment order, from list to pocket
Worked example — illustrative figures, not a client result
List price 100.0
Order-size discount −6.0
Negotiated discount −7.5
Invoice price — where the ledger stops 86.5
Distributor margin top-up −2.5
Freight absorbed −1.4
Commissioning days given free −2.2
Ninety-day terms −1.1
Warranty extension −0.9
Expedite surcharge waived −0.7
Pocket price — what the order earned 77.7
Kept Given away Every step is labelled with its value — colour is not the only cue

Across the market this is getting worse, not better. Simon-Kucher's 2025 Global Pricing Study — 2,200 business leaders across 28 countries — found average price realisation has fallen five percentage points in two years, and that 64% of companies now report rising pricing pressure, up from 57% in 2021.

Ten questions. Ninety seconds. Nobody sees your answers.

Each question maps to one of the ten leaks. Answer honestly — the score is a diagnosis, not a grade.

The Pocket Price Test

Answer Yes only if you could give a number today, without going and looking.

0 Answer the questions above

Your score appears here as you answer. Ten yes answers means you already have a pricing function in all but name.

Or write to pavel@lykov.online with your score. I will tell you plainly whether a scan is worth doing, including when it is not.

The Pocket Price Scan

One fixed-fee piece of work. No retainer, no discovery phase, no proposal process.

What you send
One file. Twelve months of quotations and order confirmations, exported from your ERP or CRM. If your system can produce a table, that is the whole requirement. I will do a twenty-minute call with whoever runs it and write the export specification myself.
What I do not need
Access to your systems. Cost data. Anything about your people beyond the name on the document. No login, no connector, no IT project.
How long
Three working days from the file landing. Day one I extract and check thirty documents against source by eye. Day two I build the waterfall and cut it by salesperson, product, customer and quarter. Day three I present it.
What you get
Your waterfall from list to pocket. The ten leaks ranked in euros, not percentages. The split between what you can fix with a memo and what needs a customer conversation. A one-page summary your controller can read without me in the room. And the memo itself, written for you, at no extra cost.
What it costs
€3,900, fixed. Agreed before I start, unchanged afterwards.
Who sees what
The cut by salesperson goes to you privately, never into a room with the team in it. That is a rule, not a courtesy.

The guarantee

If the scan does not find recoverable margin worth more than the fee in the pile you can act on without speaking to a single customer, you pay nothing.

Not the total. Not a projection. The part you could implement next Monday with a policy memo, counted in euros. If it does not clear €3,900, there is no invoice.

When I will tell you not to bother

The scan is cheap enough that people say yes to it when they should not. These are the cases where I decline the work, and I would rather say so here than after you have paid.

Who is doing this

Pavel Lykov. Twenty-two years in enterprise B2B commercial roles — Hexagon, Seequent (later acquired by Bentley Systems), RPM Global, De La Rue and Experian. Industrial software, mining technology, geoscience software, authentication and risk analytics. BSc in applied mathematics, Six Sigma Black Belt. Based in Tilburg.

Referenceable from the employment record: revenue doubled at RPM Global, market share tripled in thirteen months at Seequent, market share grown 36% at Hexagon Mining.

I have spent most of my career on the other side of this problem: watching capable commercial teams give away price in ways nobody measured, because nothing in the reporting was built to show it.

This practice is new, and I am not going to pretend otherwise. I do not have a wall of client logos, and you should be suspicious of anyone at this size who does. What I have instead is a method that is fully built, a fixed fee agreed in advance, and a guarantee that puts the risk on me rather than on you until there is a track record to point at.

Two pieces of work, one practice. This page is the Pocket Price Scan — three days, fixed fee, one narrow question about price. The broader practice at lykov.online is the Commercial Decision Review: one commercial decision tested against the evidence over four weeks, for firms weighing a market, a channel or a pricing model before committing the budget. If you are not sure which one fits, write to me and I will tell you.

The questions people actually ask

We do not really discount. Is this relevant?

Possibly not, and if so the readout will be short and you will not pay for it. But before deciding: are you counting the freight you absorb, the commissioning days, the waived surcharges and the ninety-day terms? Those are all price, and none of them appear as a discount anywhere in your system.

Our accountant looks at margin every month.

They look at invoice price, because that is what the ledger records. Everything conceded after the invoice sits in other cost lines or in no account at all — a surcharge you did not apply leaves no trace. In the waterfall above that is roughly a third of the total gap. This is not carelessness; the accounting system is not built to show it.

Can you just tell us what we should be charging?

No, and be careful with anyone who says they can without talking to your customers. What a buyer will actually pay lives in their head, not in your data. The scan tells you what you are earning today from your own records. Telling you what you could earn is a separate, larger piece of work that starts with eight conversations with your customers.

Is our data safe?

Signed NDA before anything moves. No access to your systems. Commercial documents only — no personal data beyond the contact name printed on a quotation. Everything deleted on completion, confirmed in writing.

What if it makes one of my people look bad?

It might. Discount depth varies more between salespeople than most owners expect. That cut comes to you alone, in a separate document, and what you do with it is your business. I have no interest in running a performance review.

Why now specifically?

Because most manufacturers set next year's list in Q4, and most set it as last year's list plus a percentage. Whatever was leaking is then locked in for another twelve months. A scan in October changes the January list. A scan in March cannot.

Start with the test

It takes ninety seconds, it costs nothing, and it tells you something true about your own business whether or not you ever speak to me. If the questions you cannot answer bother you, that is the signal — not my sales pitch.