Almost every pricing engagement we run starts by discovering that nobody knows the margin on last year's work at engagement level.
## Measure realised margin per engagement
Delivery hours against fees, per engagement, for the last twelve months, including the unbilled hours. The distribution matters more than the average: a handful of engagements usually consumes the margin from all the others.
## Separate scoping from pricing
If overruns cluster in particular work types, you have a scoping and change-control problem, and raising prices will not fix it. Fix the scope definition and the change process first, then price the well-defined work properly.
Where this applies
- Consulting
- Implementation
Work with Marsden Advisory
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