SIMALTO vs Real Decisions: Why the Model Breaks Down in the Boardroom

SIMALTO delivers clean charts.

Preference scores, constraints, maybe even some “optimization.” But none of that survives contact with the decision room.

Because real decisions don’t happen inside grids. They happen when teams disagree — and need to choose anyway.

That’s where SIMALTO fails: it refuses to surface tension. And if a model can’t show tension, it’s not built for strategy.

Why SIMALTO Feels Reliable — Until It Isn’t

Executive teams often mistake SIMALTO’s structure for rigor.

It looks balanced. It looks numeric. It looks like a model that took real thinking to produce.

But structure isn’t the same as strategy. And most of the trade-offs that matter never make it into the grid.

You don’t solve decision friction by hiding it in a matrix.

For a basic overview of how SIMALTO works structurally, see its Wikipedia page. Just don’t confuse structure with strategy.

Additive Trade-Offs Hide What Really Matters

SIMALTO reduces everything to “cost” points.

That logic assumes each trade-off is neat and interchangeable. But here’s what that logic misses:

  • A 10-point packaging upgrade isn’t the same as a 10-point warranty extension
  • Emotional brand features get cut while safe but dull ones stay
  • Pricing is fixed in the model, but fluid in the real world

Additive thinking flattens nuance. And the most important pricing decisions are never flat.

Missed part one? Why SIMALTO Survives—Even If It Was Never Good Enough

What’s Missing? Strategic Conflict

SIMALTO doesn’t help the team get aligned—it helps them avoid conflict.

That’s fine for pre-work. But in the boardroom?

  • Margin pressure collides with positioning
  • Product gets underbuilt to hit constraints no one agreed to
  • The model gets blamed when things go sideways

SIMALTO didn’t fail because it was inaccurate.
It failed because it refused to carry the real weight of the decision.

Revenue Crafting Models the Fight on Purpose

Revenue Crafting doesn’t flatten.
It surfaces the right tensions—on purpose—so decision-makers can actually decide.

That means:

  • Showing what happens when one team “wins”
  • Making opportunity costs explicit
  • Building paths that hold under scrutiny, not just in survey data

If the model doesn’t make the room sharper, it’s just another artifact.

Tidy models rarely survive the first real conversation.
That’s why Revenue Crafting exists.

Jake Lee, expert pricing consultant and founder of Red Analytics
Jake Lee

Jake Lee helps brands stop pretending guesswork is strategy. He runs Red Analytics, where pricing gets serious.
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