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C6

Pricing Adequacy Gap

Composite / composite / Immediate

What it detects

Revenue per unit is falling while costs rise, pricing hasn't kept pace with cost structure.

When it fires

Revenue growth > [redacted]% + margin compressing > [redacted] pts (pricing not keeping pace with cost structure)

What it looks like in practice

You added two consultants and revenue per FTE dropped from $[redacted]K to $[redacted]K/month. Meanwhile, your COGS per project increased [redacted]% from contractor rate increases. Your old pricing was designed for the old cost structure. It no longer works.

Severity levels

  • MEDIUM
  • HIGH

Thresholds

Exact thresholds, formulas, and severity bands are omitted from this public view. The full methodology, with every figure, is available in the authenticated app.

How it connects

At current revenue, the [redacted]pt margin compression represents [redacted]/month ([redacted]/year) in foregone gross profit. Without a pricing intervention, margin continues compressing as project mix grows.

SEE IT ON REAL NUMBERS

The exact thresholds, the formula, and your own figures are in the authenticated app. See it against a real, simulated dataset for Integra Executive Services, our public demo company, or connect your own QuickBooks Online account.

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