A buyer will want to see that our business can raise prices without losing customers. How do we prove our pricing power during our exit runway using our EOS Scorecard data?

Question

Tyler Smith · Accepted Answer

Buyers look for businesses with pricing power because inflation and market shifts can quickly erode margins. To command a premium multiple, you must prove to a buyer that your customers are highly sticky and will accept price increases without leaving. Use your exit runway to establish this proof systematically. Set a quarterly Rock to implement a structured, value-based price increase across your customer base. Do not do this blindly; communicate the increase alongside new feature rollouts, improved service delivery, or upgraded automated reporting tools. Track the results closely on your EOS Scorecard. Document the percentage of customers who accept the price increase versus those who churn. If your churn remains negligible despite the higher prices, you have empirical proof of pricing power. Presenting this clean scorecard data to a buyer during due diligence demonstrates that your business has a deep competitive moat. It proves you can pass rising costs onto your clients, giving the buyer the confidence to pay a premium for your future cash flows.