The Power of a Pricing Model

A well-structured pricing model can assist a company to gain a better understanding of anticipated financial returns from servicing a new contract, service or project; based on a specified price and the incremental allocation of all indirect costs.

The challenge of costing a service contract

As discussed in Article 1, on the surface costing a service contract may seem straight forward; however there are a number of factors to consider. Your Company needs to understand the importance of full-costing versus incremental costing of a new service contract.