The economics depend on the business.
The same proposed price or investment can create different obligations in a service contract, a subscription and a manufacturing order. We examine the commercial terms that govern each.
Business-to-business services
An account may buy a defined output while the supplier commits people for a longer period. Scope changes, included revisions and additional work affect the contribution the contract can produce.
A proposed fee change needs to be read with the work the customer can request. We examine whether extra work changes the price, consumes capacity already reserved or requires another commitment from the business.
Recurring revenue
A renewal-price proposal depends on which customers renew, reduce their purchase or leave. An increase in revenue per continuing customer can accompany a different result across the full renewal group.
The assessment keeps the customers and renewal period consistent. It examines the service commitments that remain, the contribution under the proposed terms and the customer response assumed in the plan.
Manufacturing and distribution
A volume proposal may require materials or capacity to be committed before the customer takes the full quantity. Purchasing terms, minimum production runs and cancellation provisions can limit how far costs fall when demand changes.
We examine the price and volume together. The comparison identifies stock that can serve other customers, commitments specific to the proposal and the point at which another capacity decision would be needed.
Investment portfolios
Withdrawing from an activity may release working capital while leaving a lease, support function or supply commitment elsewhere in the group. Retaining it may require capital that is absent from the current earnings figure.
We compare the proposed uses of capital through those changes. The assessment shows which resources remain committed, which become available for another activity and what the remaining portfolio must continue to supply.
