The Silent Drain

Most companies pay a lot of attention to closing contracts. Winning new business makes everyone feel good.

A lot less attention is paid to managing contracts once they have been signed.

That’s a mistake.

Left unmanaged, the only certainty is that the silent drain will come into play and your margin will leak away. The silent drain has two main sources.

Scope creep – you end up doing more than what is in the contract, but you don’t adjust the price.

Price erosion – you don’t adjust your prices to keep up with inflation, either because the contract doesn’t have an indexation clause, or because you don’t have a system for applying indexation.

The research is compelling. Most suppliers lose an average 9.2% of annual revenues by under-managing their contracts. The worst performers are oil, gas and utilities, which leave 14.5% on the table. (source: IACMM).

The Unblocker!

Stuck in a negotiation? Puzzling over a contract which makes no sense? Not sure how to reconcile legal sense with business sense or common sense or any kind of sense? I can help. Book a 60-minute meeting with me here, and send me a brief explanation of the issue that’s causing you grief. The cost is £999 (includes VAT) and – this is the good bit – it comes with a no quibble guarantee. If you don’t think you got your money’s worth, send me an email within 48 hours and I will transfer the money back to you, no questions asked.

8 April 2025