NumbrLabs

INSIGHTS ON RUNNING YOUR NUMBERS

MAY 2026

The Hidden Cost
of Contract Drift

When contracts stop making money

You win the client, onboard them well, and the service runs. Months later you check the numbers — and the margin’s gone. Why? The contract drifted.

Minimum order quantities softened (“just this once” became “just as usual”). A new packing/label spec crept in. Customer service picked up extra tasks. Volumes never materialised. The client praises your flexibility but you’re delivering a different contract to the one you priced. And without clear checkpoints or timely numbers, the slide went unnoticed.

What to watch

  • MOQs (minimum order quantities) and batch sizes
  • Pack/label/spec changes
  • Extra customer service tasks (returns, reporting, ad-hoc calls)
  • Delivery frequency and split shipments
  • Missing volume commitments

Fix it with simple guardrails

  • Baseline + change log: lock the original SOW (scope of work), specs, and MOQs at onboarding; log every deviation.
  • Rate card + de-minimis: small changes billed on the next invoice; bigger changes require a variation order.
  • Monthly margin snapshot by client: one page showing revenue, direct cost, time, and variance versus price.
  • QBRs (quarterly business reviews): show outcomes and cost-to-serve; agree resets before “just this once” becomes “always.”

Say “yes” to flexibility — but price it. Goodwill isn’t free.