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C6

Pricing Adequacy Gap

Composite / composite / Immediate

What it detects

Revenue is growing, but gross margin is compressing at the same time: pricing has not kept pace with the cost structure, so each new dollar of revenue is worth less than the last.

When it fires

Revenue growth > [redacted]% + margin compressing > [redacted] pts (pricing not keeping pace with cost structure)

What it looks like in practice

Revenue is up [redacted]% year over year, but gross margin slipped from [redacted]% to [redacted]% over the same window. The growth is real, yet each additional dollar of revenue is carrying more delivery cost than the last, so the top-line gain is quietly buying less profit. Your pricing was set for the old cost structure and has not caught up.

Severity levels

  • MEDIUM
  • HIGH

Thresholds

Exact thresholds, formulas, and severity bands are omitted from this public view. The full methodology, with every figure, is available in the authenticated app.

How it connects

At current revenue, the [redacted]pt margin compression represents [redacted]/month ([redacted]/year) in foregone gross profit. Without a pricing intervention, margin continues compressing as project mix grows.

SEE IT ON REAL NUMBERS

The exact thresholds, the formula, and your own figures are in the authenticated app. See it against a real, simulated dataset for Integra Executive Services, our public demo company, or connect your own QuickBooks Online account.

Get accessSee the nightly proof