Your pricing rule hasn't changed and your estimators aren't careless, yet realised margin keeps landing below quoted, and competitive selection explains more of that gap than either.
SBy Steve··5 min read
A pattern shows up in a lot of quote-driven businesses. The pricing policy is intact: every job carries the same target margin, nobody is authorising discounts, and the estimating team is experienced. Yet when finance compares realised margin against quoted margin across a year of completed work, the realised number is consistently lower. Not on every job: on enough of them, and by enough, to matter. The instinct is to look for a culprit: sloppy estimating, scope creep, a delivery team that overruns. Sometimes it is one of those. But…
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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.