Spring Clean Your Revenue: Are Your Contracts Quietly Costing You?

As suppliers grow, pricing structures evolve. Services expand. Licensing models change. But contracts often remain frozen in time.

The result? Revenue leakage hiding in plain sight.

1. Missed Price Increase Rights

Many supplier contracts contain annual uplift provisions - linked to CPI, RPI or fixed percentage increases. Yet businesses frequently:

• Miss the notice window.

• Apply increases inconsistently.

• Forget to trigger the clause at all.

  
  

Over time, this compounds into significant lost revenue.

2. Licence Revenue & Add-Ons

Software and service businesses are particularly vulnerable to:

• Undercharging for additional users.

• Failing to invoice for added modules.

• Allowing expanded usage without contract variation.

  
  

Scope creep isn’t just operational, it’s contractual.

If your customer’s use has grown but your pricing hasn’t, your contract isn’t working hard enough for you.

3. Scope Creep: The Margin Killer

What started as a defined service often expands through informal requests:

• “Can you just add this?”

• “It’s only a small change.”

• “We assumed that was included.”

  
  

Without disciplined change control, margins erode quietly.

Spring Action Checklist

• Audit renewal and uplift dates.

• Review pricing clauses for clarity.

• Check whether licence tracking aligns with contract terms.

• Reinforce change control processes.

  
  

Contracts shouldn’t be static documents. They should actively protect margin.

Spring is the perfect time to check whether yours still do. Contact us to find out how we can support you.