The retainer bills 40 hours. The client used 12.

An under-consumed retainer produces your best-looking margin and your weakest renewal, and almost nobody inside the business is incentivised to mention it.

By Steve 5 min read
Abstract bridge artwork for The retainer bills 40 hours. The client used 12.

A retainer that goes half unused is a strange thing. On the management accounts it is the healthiest line in the book: revenue arrives on the first of the month, delivery cost is a fraction of what was planned, and nobody is chasing anything. On the renewal date it is the account most likely to disappear. The two facts are not a coincidence. They are the same fact seen from two sides of the invoice. What the buyer is actually computing You are looking at gross margin per account. The…

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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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