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  • Writer's pictureJoel White

100 Thoughts on Pricing: #84

Examples of causes of overcapacity to look into before simply cutting price to try to win more business:

  • poor resource management on contracted work

  • cancellations due to poor customer service

  • poor scoping and/or contract management practices (e.g., consistently overscoping the number of units required)

  • robotically backfilling leavers with external hires

  • poor business development and marketing performance

The list could go on...the key is to protect your pricing and profitability, even in the toughest times, by making sure you've examined factors like these which are much more difficult to solve than cutting price, but far more effective in guaranteeing long term financial health.



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