Why CFOs must take control of pricing strategy

The following is a guest post from Stephan Liozu, chief value officer at Zilliant. Opinions are the author’s own.

CFOs running companies without dedicated pricing teams today confront a stark reality: slowing growth, inflationary pressures that refuse to dissipate and the looming specter of stagflation. At the same time, companies without dedicated pricing teams find themselves vulnerable as costs fluctuate and competitive pressures erode margins. Without in-house pricing expertise, the CFO must preserve profitability and position the company for resilience amid economic turbulence.

Once treated as a tactical exercise, pricing is now a strategic imperative. It cannot be left to reactive decision-making or gut instinct, particularly in a period defined by price volatility, supply chain instability and unpredictable demand. Success requires mastering the three Cs: 

1. Costs, which now change almost minute-by-minute;
2. Competition, which requires anticipating rivals’ responses to market shifts; and
3. Customer value, which must be reassessed as buyer perceptions evolve rapidly in uncertain times. 

Unfortunately, most companies focus solely on costs, missing crucial competitive and value opportunities. If the business lacks a specialized pricing function, the CFO must take ownership of this critical lever for financial health.

Protecting margins when pressures mount

Margin erosion is one of the most immediate consequences of economic uncertainty. Costs for materials, labor and transportation have risen substantially in recent years, but companies often struggle to adapt their pricing strategies quickly enough to keep pace. Delays in price adjustments, uncoordinated discounting practices and failure to account for customer willingness to pay can result in shrinking profits — even in sectors where demand remains relatively strong. 

Consumer behavior compounds these challenges. Research shows that pricing uncertainty often triggers stockpiling behavior, accelerating shortages and creating inflationary pressures that harm both businesses and consumers. Clear communication about pricing changes becomes as critical as the pricing decisions themselves.

For CFOs, the first step is establishing control over pricing decisions and bringing financial rigor to the process. Without a robust pricing strategy, businesses risk either underpricing their products and leaving money on the table or overpricing and losing critical sales volume. CFOs must:

• Identify cost-to-price misalignments. Many companies still rely on outdated cost-plus pricing methods, which fail to reflect dynamic market conditions, competitive positioning or shifts in customer value perceptions. CFOs need to champion a pricing model that responds dynamically to both costs and demand.
• Control discounting practices. Sales teams often resort to heavy discounting to close deals, especially when facing revenue pressure. CFOs must implement clear guidelines for discount approval, ensuring that price concessions do not eat into already thin margins.
• Manage cost-to-serve. When stagflation hits, customers turn to discount requests to maintain their margins. The CFO must prioritize adapting business rules and monitoring customer cost-to-serve.
• Use data to guide decisions. In a period of uncertainty, relying on gut instinct for pricing decisions is no longer acceptable. CFOs must use data and analytics to evaluate price elasticity, uncover customer willingness to pay and identify underperforming segments.

Through financial discipline, CFOs can turn pricing into a lever for margin protection rather than margin destruction. Without a pricing team, the CFO is the pricing team.

Building pricing resilience to navigate stagflation risks

The risk of stagflation — a toxic mix of rising prices and stagnant growth — adds another layer of urgency. Stagflation leaves companies caught between cost pressures and slowing demand, making margin preservation even more challenging. CFOs must act proactively to prepare for this scenario.

A key area of focus is pricing resilience: the ability to adjust prices quickly, efficiently and strategically to account for cost changes and market shifts. Companies without dedicated pricing expertise often lack the systems, processes and tools to move with the speed and precision required. CFOs must prioritize:

• Developing clear pricing governance. Establishing a centralized decision-making process for pricing, rather than delegating it to individual sales teams or product managers.
• Understanding customer value. Not all customers respond to pricing changes in the same way. CFOs must help the organization differentiate pricing strategies by segment and ensure that prices reflect customers’ perceived value.

Leading pricing strategy

CFOs may hesitate to step into the pricing role due to a perceived lack of expertise. However, the skills that make a CFO effective — financial acumen, analytical rigor and a focus on long-term value creation — are exactly what businesses need to address pricing challenges in uncertain times.

If the organization lacks a pricing team, the CFO can lead by assembling a cross-functional group, including finance, sales and operations, to align pricing priorities. This group can be the foundation for a more sophisticated pricing capability focused on data-driven decision-making and financial discipline. In the short term, the CFO’s leadership on pricing can protect margins and stabilize profitability. Over the long term, it positions the company to build a culture where pricing is treated as a strategic asset rather than a reactive tool.

This is not a temporary challenge. With ongoing global tensions and supply chain restructuring, experts predict market disruption will remain constant for the next 10-20 years. Companies that fail to adapt their pricing capabilities to this new reality risk falling behind more agile competitors.