Profitability & Pricing
Your pricing is either building your business or slowly eroding it. It is never doing nothing.
◆ The Situation
Revenue is there. Profitability isn't where it should be. The explanation you've always reached for — labour costs, material prices, competition — may be partially true. But the more precise explanation is almost always in the pricing model. How you set your prices, how often you update them, how you handle scope changes, and which customers or jobs you're discounting for which reasons — these decisions, made incrementally and without a framework, accumulate into a margin structure that no longer reflects the value you deliver.
In the trades, in services, in hospitality, in retail — the businesses that struggle with profitability almost always have a pricing problem hiding behind what looks like a cost problem.
◆ The Complication
Pricing is the highest-leverage financial decision in most businesses and the one that receives the least systematic attention. It is set at the start, adjusted reactively, and almost never analysed at the level of detail that would reveal where money is being left on the table or where price is actively pushing away the best customers.
Large companies have pricing strategy functions and revenue management teams. Owner-operated businesses have a rate card, a gut feeling, and the implicit pressure to win the next job.
◆ What We Do
We analyse your pricing at the level where the real picture lives — by job, by product, by customer, by service line — and identify where margin is strong, where it's being eroded, and why. We benchmark your rates against your specific market and competitive set, using publicly available benchmark data.
We build the financial case for pricing changes — showing you exactly what a 5%, 10%, or 15% rate adjustment on specific categories does to overall profitability under different volume assumptions.
We develop a pricing model that reflects your actual costs, your market position, and the value you deliver — and we build the communication approach for implementing it with existing customers without damaging the relationships that matter.
◆ What it looks like in practice
A painting and drywall contractor with a 78% bid win rate discovers through pricing analysis that he is the cheapest reliable bidder in his market — not the best value. Rebuilding the pricing model from actual cost data and repricing to a 49% win rate generates 31% more net profit on essentially flat revenue. He stops asking about how to grow revenue. He starts asking how he found himself in this position for nineteen years.
Every engagement starts with a diagnostic — a structured read of the business before any advice is given.
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