The profitability assurance is important to mitigate the root cause areas of leakage such as product/service not delivering the expected margin, services fee higher than retail charge etc. If not followed it leads to challenges like:
- Product/service as implemented cannot deliver the expected level of profit to the business.
- Retail pricing is set lower than the costs to deliver some or all of the services, resulting in low/zero/negative margin.
- Retail pricing is not adjusted to maintain profitability when the ongoing costs of delivering those services increase, resulting in low/zero/negative margin.
- Costs incurred from third party suppliers is higher than retail charge, e.g. national roaming fees, VAS service charges.
- A fixed price discount is calculated from a value that is subject to change and therefore can affect the fixed price discount.