02/06/2026
Robbie from the Pendleton Lead Development programme here, check out our latest blog post:
Better Decisions, Stronger Businesses: Learning From Pricing and Mistakes
Many businesses work incredibly hard but still struggle to improve profitability, efficiency, or long-term growth.
Often, the issue is not effort. It is decision-making without enough visibility.
At Pendleton, the ‘Spend’ and ‘Measure’ modules within the Business Waterwheel encourage businesses to become more intentional about how they evaluate performance, pricing, risk, and operational improvement.
The ‘Spend’ module focuses heavily on pricing strategy and customer behaviour.
Many business owners avoid increasing prices because they fear losing customers or becoming uncompetitive. As a result, prices often remain unchanged while costs continue to rise, putting increasing pressure on margins and profitability.
The module challenges businesses to review previous pricing changes and analyse what actually happened afterwards. Did customer numbers decline significantly? Did profitability improve? Were the customers lost primarily the most price-sensitive and operationally demanding?
In many cases, leaders discover the fear surrounding price increases was greater than the actual impact itself.
This is because customers rarely buy based on price alone. Trust, quality, reliability, convenience, and perceived value all influence purchasing decisions. Businesses that understand this are often able to position themselves more confidently and improve profitability without dramatically affecting demand.
The module also encourages businesses to think carefully about how pricing changes are communicated. Customers respond far better when businesses clearly explain value, improvements, service quality, and the reasons behind operational decisions.
Alongside this commercial analysis sits the ‘Measure’ module, which focuses on organisational learning and operational awareness.
Many businesses only investigate problems once something serious has already happened. A key customer leaves, a project fails, or operational issues begin affecting profitability. By this stage, the warning signs were often visible much earlier.
The module encourages businesses to review mistakes, near misses, and operational failures more honestly. Rather than focusing on blame, the objective is to identify the earliest indicators that something was going wrong and improve systems before similar issues happen again.
Importantly, this also requires businesses to examine culture.
Would employees feel comfortable admitting a mistake early enough for the business to learn from it?
Would somebody raise concerns about inefficient processes, customer dissatisfaction, or operational risk before it became a major issue?
In many organisations, the honest answer is no.
Businesses that encourage transparency, feedback, and continuous learning often improve much faster over time because problems are identified earlier and teams become more confident contributing ideas and improvements.
A strong UK example of this approach can be seen in outdoor clothing company Finisterre. As the business expanded, it focused heavily on understanding customer behaviour, refining operations, gathering team feedback, and continuously improving systems rather than relying purely on aggressive growth tactics.
That is ultimately what these modules are designed to create.
Not businesses that simply work harder, but businesses that make better decisions because they understand both their customers and internal operations more clearly.
Because sustainable growth rarely happens by accident.
It comes from improving visibility, learning continuously, and making better decisions over time.
Robbie Duncanson
and the Pendleton Team