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The following points come from a Blog entry on RECVUE’s website (https://www.recvue.com/what-is-revenue-leakage-and-how-to-stop-it-before-it-starts/ (Links to an external site.))
Revenue Leakage Defined
Revenue leakage is the unnoticed or unintended loss of revenue from your company. While leaks can come from both the revenue and the expenditure side, most commonly, revenue leakage refers simply to not billing (or under-billing) your customer for products and services provided. How big a problem is it? Statistics surrounding revenue leakage vary, but estimates indicate that most companies stand to lose between 1 and 5 percent of their earnings before they can be realized.
Leverage Usage-Based Billing
Revenue leakage may also occur when you’re not able to efficiently and accurately track and bill for different usage. If you can’t accurately track and bill for consumption-based services, you could be missing out on a significant revenue stream.
Usage-based billing helps ensure you’re correctly charging for your services and never leaving potential revenue on the table.
Read The Power of Pricing and Pricing for profitability: What’s in your pocket? Pdf versions of the articles are listed under the Read and Review tab for Module 2.
How is the idea of revenue leakage relevant to chapter 14 of our text? Give at least two examples of avoiding revenue leakage by stating “We could realize more revenue if…”
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