Where margin is really won and lost.
Across my roles I led changes to pricing, risk and trading that delivered over 300 basis points of sustained margin improvement. The gain came from knowing where margin should be, where it was falling short, and where applying it would do the most work.
Why it matters
Headline margin tells you very little on its own. The same number can be a strong result or a real problem depending on the customer mix behind it, and the biggest gains rarely come from simply pricing everything tighter.
How I go about it
What margin should be, and what it could be
Benchmark expected margin market by market, with particular focus on markets that have underperformed for a long time. The gap between where margin should be and where it could be is the opportunity.
Diagnose the gap properly
Read margin against customer mix: a book weighted to sharp turnover and a more recreational book at the same margin are very different problems. Then ask whether the gap is leakage, or trading inefficiency. They need different fixes.
Put margin where it does the most work
Efficient prices build the confidence to apply margin selectively, in the places where it has the most effect, rather than spreading it evenly across the book.
Review as behaviour shifts
Customer betting patterns change, and so do wider market conditions. Settings that worked last year drift, so margin efficiency needs regular, structured review to stay improved.
This page sets out my general approach. Specific data, methods and tools from previous employers remain confidential.
What this means for your business
Operators
A margin diagnostic and a trading strategy that sets where to compete on price and where to protect margin.
Racing bodies
Insight into how operators price your product, and why some of your markets attract more turnover than others.
Investors
A view on whether a business’s margin is sustainable, and how much headroom is left.