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Pricing

Tariff volatility and operating margin: a 90-day pricing playbook

Most pricing committees still operate on an annual cycle. In 2026, that's the wrong unit of time. Here's the 90-day cadence we've been running with clients exposed to cross-border cost shocks.

RNM Admin9 May 20262 min read

If your input costs can move 8–15% on a policy announcement, an annual pricing review is malpractice dressed up as discipline. We've spent most of Q1 helping clients move from yearly to quarterly pricing, and the surprise is how little operational change it actually takes once the cadence is in place.

The 90-day loop

The playbook is four steps, repeated each quarter:

Day 1–15 — Re-segment by exposure, not by revenue

Most pricing books segment customers by ARR or by industry. For tariff-exposed businesses, the segmentation that matters is: how much of this customer's price is composed of inputs we don't control?

Three buckets:

  • <10% exposed — price moves with overall inflation; don't touch
  • 10–35% exposed — price moves quarterly, in published bands
  • >35% exposed — price is contractually pegged or surcharged

You will almost certainly find that your biggest customers are in the wrong bucket.

Day 15–45 — Rewrite the contract clauses, not the prices

The mistake teams make here is going straight to "raise prices." The leverage is upstream: the contract language that permits price moves without renegotiation.

Three clauses to add or sharpen:

  1. A published index tied to a public number (HRC steel, Brent, a named freight index)
  2. A trigger threshold — e.g., "moves of more than 6% in the index trigger a price review within 30 days"
  3. A cap and floor — so the clause survives customer scrutiny

A clause your customer trusts is worth more than a price increase you have to fight for.

Day 45–75 — Run the playbook on one segment

Pick the segment where you have the cleanest contract language, the most exposure, and the strongest relationships. Run the full price move there. Document what broke.

Day 75–90 — Decide whether to propagate, hold, or retreat

Most teams skip this step and just propagate. Don't. The decision is whether the move paid for itself net of churn risk — and that number is rarely the one in the deck.

Why the cadence works

The cadence works because it converts pricing from an annual political event into a quarterly operational one. Each quarter, the question isn't "do we dare?" It's "what does the index say?"

That shift — from courage to process — is the entire game.

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