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Margin Leakage: Identify & Stop Silent Profit Losses in SMEs

Margin Leakage: Identify & Stop Silent Profit Losses in SMEs

Margin Leakage: Identify & Stop Silent Profit Losses in SMEs

The silent margin killer in every SME

Margin leakage is one of the most underestimated forms of profit loss within SMEs. It happens quietly, gradually, and often for years, without anyone really noticing it.

Margin leakage is one of the most underestimated forms of profit loss within SMEs. It happens quietly, gradually, and often for years, without anyone really noticing it.

Margin leakage is one of the most underestimated forms of profit loss within SMEs. It happens quietly, gradually, and often for years, without anyone really noticing it.

When prices are not managed consistently, when exceptions keep piling up, or when data is incorrect, your margin starts to slip away. Not due to one big mistake, but by dozens of small discrepancies that accumulate every day.


For many SMEs, it's not just a few hundred euros, but tens to even hundreds of thousands of euros that disappear every year without anyone noticing the alarm bells ringing.


Margin leakage never stops on its own.
It grows, becomes measurable, and eventually noticeable, as soon as you fail to adjust it.

Yggra – pricing consultancy.
Yggra – pricing consultancy.

Why margin leakage occurs in SMEs

Most SMEs do not have fully structured pricing processes. Pricing arises historically and grows organically through exceptions, agreements, individual deals, and habits.

Many decisions are not documented.

This gradually leads to a complex mix of discounts, exceptions, product prices, and customer conditions.

  1. Deviating discounts without clear rules

Without a clear framework, each seller gives discounts in their own way. Over time, chaos arises in margins and customer conditions.

  1. Unconscious exceptions that have never been documented

Many conditions were once set “because it suited at the time”. No one knows exactly why they exist — but they remain for years.

  1. Outdated prices that do not keep up with costs

Cost prices are evolving faster than price lists. As a result, you sometimes sell products below their actual margin.

  1. Errors in price lists, ERP, or calculations

Manual uploads and Excel structures quickly lead to errors — often invisible but with a significant impact.

  1. Too much freedom for sellers

Sales will win deals and readily concede. Without clear rules of the game, margin is sacrificed to meet targets.

  1. Lack of transparency

Without dashboards, reporting and margin monitoring, leakage is only noticed far too late.

  1. Deviating discounts without clear rules

Without a clear framework, each seller gives discounts in their own way. Over time, chaos arises in margins and customer conditions.

  1. Unconscious exceptions that have never been documented

Many conditions were once set “because it suited at the time”. No one knows exactly why they exist — but they remain for years.

  1. Outdated prices that do not keep up with costs

Cost prices are evolving faster than price lists. As a result, you sometimes sell products below their actual margin.

  1. Errors in price lists, ERP, or calculations

Manual uploads and Excel structures quickly lead to errors — often invisible but with a significant impact.

  1. Too much freedom for sellers

Sales will win deals and readily concede. Without clear rules of the game, margin is sacrificed to meet targets.

  1. Lack of transparency

Without dashboards, reporting and margin monitoring, leakage is only noticed far too late.

Yggra – pricing consultancy and pricing authority for B2B companies.
Yggra – pricing consultancy and pricing authority for B2B companies.
Yggra – pricing consultancy and pricing authority for B2B companies.

How we identify margin leakage

We analyse your complete pricing environment — from customer conditions to contract prices, price lists, discounts, products and internal processes.

Our goal: to clearly show where you are losing margin, how much, and why.

Our analysis includes, among other things:

Analysis of discounts & exceptions
What discounts are granted? By whom? In what situations? And what does this cost in margin?

Segment & customer analysis
Are all customers profitable? Is each customer paying a fair price for the value you provide?

Pricing structure & product profitability
Which products are structurally underpriced? Where are margins disappearing in your assortment?

Contract analysis & indexations
Which agreements are outdated? Which contracts have never been indexed?

Processes & governance
Where do errors arise? Who decides? What rules are missing?

Data quality & ERP errors
Incorrect costs, old price thresholds, forgotten price lists, duplicate systems — small errors cause large losses.

What does solving margin leakage yield?

What does solving margin leakage yield?

Resolving margin leakage can lead to surprisingly significant impact. Often, it is not necessary to raise prices — just to apply them more consistently.

SMEs addressing margin leakage notice:

Yggra – pricing consultancy and pricing authority for B2B companies. Strategic pricing, pricing optimization.
Yggra – pricing consultancy and pricing authority for B2B companies. Strategic pricing, pricing optimization.
Yggra – pricing consultancy and pricing authority for B2B companies. Strategic pricing, pricing optimization.

higher and more stable margins

Yggra – pricing consultancy and pricing authority for B2B companies. Strategic pricing, pricing optimization.
Yggra – pricing consultancy and pricing authority for B2B companies. Strategic pricing, pricing optimization.
Yggra – pricing consultancy and pricing authority for B2B companies. Strategic pricing, pricing optimization.

fewer uncontrolled discounts

Yggra – pricing consultancy and pricing authority for B2B companies. Strategic pricing, pricing optimization.
Yggra – pricing consultancy and pricing authority for B2B companies. Strategic pricing, pricing optimization.
Yggra – pricing consultancy and pricing authority for B2B companies. Strategic pricing, pricing optimization.

structurally profitable customer relationships

Yggra – pricing consultancy and pricing authority for B2B companies. Strategic pricing, pricing optimization.
Yggra – pricing consultancy and pricing authority for B2B companies. Strategic pricing, pricing optimization.
Yggra – pricing consultancy and pricing authority for B2B companies. Strategic pricing, pricing optimization.

better predictable results for finance

Yggra – pricing consultancy and pricing authority for B2B companies. Strategic pricing, pricing optimization.
Yggra – pricing consultancy and pricing authority for B2B companies. Strategic pricing, pricing optimization.
Yggra – pricing consultancy and pricing authority for B2B companies. Strategic pricing, pricing optimization.

more impact from existing pricing strategies

Yggra – pricing consultancy and pricing authority for B2B companies. Strategic pricing, pricing optimization.
Yggra – pricing consultancy and pricing authority for B2B companies. Strategic pricing, pricing optimization.
Yggra – pricing consultancy and pricing authority for B2B companies. Strategic pricing, pricing optimization.

clearer agreements between teams

Yggra – pricing consultancy and pricing authority for B2B companies. Strategic pricing, pricing optimization.
Yggra – pricing consultancy and pricing authority for B2B companies. Strategic pricing, pricing optimization.
Yggra – pricing consultancy and pricing authority for B2B companies. Strategic pricing, pricing optimization.

faster and more professional sales behaviour

You will see the results within a few weeks.

Yggra – pricing consultancy, pricing optimization, margin management, revenue growth.
Yggra – pricing consultancy, pricing optimization, margin management, revenue growth.
Yggra – pricing consultancy, pricing optimization, margin management, revenue growth.

Why solving margin leakage is crucial for scalable growth

Why solving margin leakage is crucial for scalable growth

Why solving margin leakage is crucial for scalable growth

SMBs that grow without a pricing structure increase their risk of margin erosion.
SMBs that grow with a pricing structure maximise their profit at every step.

Resolving margin leakage:

  • increases your profit without extra revenue

  • creates stability for future investments

  • reduces dependency on individual sales approaches

  • enhances the professionalism and credibility of your organisation

How Yggra helps solve margin leakage

How Yggra helps solve margin leakage

We combine pricing expertise, data analysis, and practical experience with implementations within SMEs. No theoretical recommendations, but realistic improvements that fit within your organisation.

Our approach is:

  • pragmatic

  • transparent

  • data-driven

  • impact-focused

  • usable for both management and sales

The Yggra team is a diverse team of talented people, ready to help you.
The Yggra team is a diverse team of talented people, ready to help you.
The Yggra team is a diverse team of talented people, ready to help you.

Ready for the full

potential of pricing

to make use of?

Get clear, data-driven insights into your pricing performance, maturity, and margin potential, specifically for SMEs in industrial and technical environments.


✔ No obligation


✔ Quick turnaround


✔ Tailored to SMEs in industrial environments

It is time to transform pricing into your most powerful leverage for growth. Collaborate with Yggra and let us build a strategy that really works for your business.

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