The situation
We were asked to review the contract base of a £100m revenue service business
What we did
- Compiled a detailed gross margin analysis for each contract and region of the business
- Analysed the demand for each of the services lines
- Over a period of a year, increased the uptake of higher margin service contracts and reduced the lower margin services contracts
- Revenue overall continued to grow
The outcome
The gross margin of the business increased by over 30% through firstly understanding each contract's margin and then changing the mix of contracts
