The list price hasn’t changed in three years. The realised price falls every quarter.

Price erosion rarely arrives as a decision. It accumulates one concession at a time, in places the price list never sees.

By Steve 5 min read
Abstract bridge artwork for The list price hasn’t changed in three years. The realised price falls every quarter.

A business can hold its list price perfectly steady and still watch its realised price decline year after year. Nobody signed off on a price cut. There was no competitor announcement, no board paper, no memo. Yet the average amount actually collected per unit of work has drifted down, and gross margin has drifted with it. This is one of the most common and least visible forms of margin loss in an SME, and it happens because most businesses measure the price they publish rather than the price they keep.…

Keep reading for free

Create an account to read the rest.

The whole library is free. No card, no subscription, no trial that quietly ends. An account simply lets us know who we are writing for, and opens every article from here on.

  • Every article, in full, at no cost
  • New articles published every weekday
  • Takes about twenty seconds
Create a free account I already have one

Free means free. We will not charge you for the library, and you can read as much of it as you like.

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.

More on Pricing

Scroll to Top