Pricing
List price is £1,200. The average invoice is £940.
Most businesses know what they charge. Far fewer know what they actually collect, or why two similar customers pay very different prices for the same thing.
Rialto Bridge
Pricing
Articles on pricing.
Pricing
The retainer is 20 hours. The average month is 31.
Nobody approved the extra eleven hours, and nobody ever will: which is exactly why they keep appearing, and why the…
Pricing
Three tiers. Nobody buys the top one.
A premium tier that never sells is either the most efficient thing on your price list or a quiet admission…
Pricing
Gross margin is 38%. A fifth of the jobs lose money.
A blended margin is an average of two different businesses. Most firms only ever see the average, and act on…
Pricing
The contract says CPI. Two thirds of your cost base is wages.
Annual indexation feels like inflation protection. When the index and the cost base measure different things, it quietly funds the…
Pricing
The margin is in the reorder. The commission is on the first sale.
A commission plan is a theory of where profit comes from. In repeat-purchase businesses, that theory is usually wrong, and…
Pricing
You raised prices 7%. Nobody left.
Zero churn after a price increase feels like vindication. It is actually four different stories, and only one of them…
Pricing
The pilot is free. It runs on your best engineer for three weeks.
Unpaid proof-of-concept work is an acquisition cost that never reaches the acquisition budget, and the buyers who demand most of…
Pricing
The estimate was £8k to £12k. They budgeted £8k.
Quoting a range feels like honesty about uncertainty. To the buyer it reads as a price with an optional penalty…
Pricing
The average discount was 9%. Most of it was never asked for.
A discount granted under pressure and a discount volunteered to relieve the seller's own nerves look identical in the ledger,…
Take it further
This is the general pattern. Your business is the specific case.
Everything here is free to read with an account, and always will be. What it cannot do is tell you which of these applies to your numbers, your market and your constraints. That is the work we do with clients.