The price list went up 6%. The average deal went up 1.4%.

A price increase that lands cleanly on the list and then disappears before the cash arrives is among the most common and least visible margin leaks in a mid-sized business.

By Steve 5 min read
Abstract bridge artwork for The price list went up 6%. The average deal went up 1.4%.

An increase gets announced. New rate card, effective the first of the quarter, communicated properly, six per cent across the board. Nobody walked. Six months later someone divides revenue by units, or by hours, or by jobs, and finds the realised increase is a little over a point. The list moved. The money didn’t. This is rarely a discipline problem, and it is almost never the fault of the people who negotiated. It is a measurement problem with a predictable shape, and the shape has a name. The gap between…

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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.

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