Your retainer is priced on the average and staffed for the peak

Recurring revenue that arrives smoothly and is consumed in bursts hides a cost most service firms never price, and a renewal risk they never see coming.

By Steve 5 min read
Abstract bridge artwork for Your retainer is priced on the average and staffed for the peak

The retainer line usually looks like the healthiest thing on a service firm’s revenue report. It is contracted, it recurs, it smooths the forecast, and it makes the business look more valuable to anyone assessing it from outside. Yet the same firms often report two symptoms that sit oddly next to that health: busy months in which retainer clients are quietly subsidised by everyone else, and renewal conversations in which a client who has had a good year argues for a reduction because they “didn’t use it all”. Both symptoms…

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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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