Margins and pricing
The diesel discount hasn't ended: now Eni pays for it instead of the State
28 September 2026, 21:03
The State is cutting the diesel discount that cost it about €12 million a day, and at the same moment Eni is capping prices at its filling stations. The bill moves from taxes to the oil companies' margins, and competitors have to follow suit with their own money.
Barilla builds a mill in Foggia and sells two: making in-house pays only above a threshold
27 September 2026, 10:13
Barilla is spending €100 million on a mill next to its pasta factory in Foggia, while selling two mills and continuing to buy their semolina. It is not a contradiction: making in-house what is otherwise bought turns a cost that follows sales into a cost that has to be paid regardless, and it pays only above a turnover threshold that should be calculated before signing.
Turnover grows by 3 per cent and profit falls: that is what happens when the margin loses two points
26 September 2026, 09:53
According to Unioncamere, more than one business in four expects turnover to grow by at least 3 per cent in 2026, and among the businesses worried about their energy bills 43.4 per cent expect lower margins. Taken together, the two forecasts can mean more work and less profit: a company's strength is measured by its distance from the break-even point, not by its turnover.
You can answer yes to all three of the Observatory's questions and still see EBITDA fall
24 September 2026, 08:41
UniCredit's survey of SMEs in southern Italy measures turnover, production and headcount, but not margin: EBITDA is the number that tells whether the business engine is working, and it can fall in the very year everything else rises.
Lucas invented the category in which his museum will be judged
21 September 2026, 18:07
The Lucas Museum of Narrative Art was born inside a category defined by its founder, and that makes any verdict impossible: the same thing happens in business every time a project is declared non-comparable.
Money already spent has no place in the decision. And yet it decides almost everything
21 September 2026, 12:53
Britain and France knew Concorde would never pay back what it cost, and carried on regardless. The same sentence can be heard on every factory floor, in front of the line that has been losing money for three years.
High energy costs are a fact. That they are your problem remains to be proven
21 September 2026, 12:38
Confartigianato puts a number on the table, and it is right. But before deciding that energy is your problem you need another number, and it is in your own financial statements: how much energy weighs on the value of production.
Diesel can't be cut. Its share of turnover can.
21 September 2026, 09:07
The diesel price surge hitting hauliers says something that applies to everyone: a cost built into the service can't be cut, it is squeezed on its share of turnover, by working on price, on the quotation and on the contract. Meanwhile the tax credit improves profit long before it improves cash.
Your top customer is worth 40% of turnover: the right question is not how much it buys
20 September 2026, 18:46
How to measure customer concentration by looking at margin rather than volume, and how to work out how many weeks of runway the cost structure leaves you if that customer stops ordering.
How to (really) reorganise a company: case history no. 5
Theory and practice
In many industrial companies, volume grows… but margins don’t. Why?
How to (really) reorganise a company: case history no. 1
Theory and practice
We are not talking about theory but about reality. About a real business, with real problems and a growth path built step by step, with method, vision and courage.
The purchasing department does not just place orders
Theory and practice
In truly well-organised companies, the Purchasing Manager is not simply someone who carries out tasks but a strategic role.
Manufacturing businesses and controlling
Theory and practice
Let’s get to the heart of the more technical side of controlling: that of mechanical engineering companies.
Without a budget, you are not running the business. You are reacting
Theory and practice
Once you understand how to build a price, where margin is generated and how to analyse it, you reach the highest level: deciding where you want to go.
Do you really want to understand where you make money? Then you need to change perspective
Theory and practice
Once you have started reading COGS and margins, the next level follows: understanding how income is generated.
You don't need cost accounting to understand where you are making money
Theory and practice
You need to start by asking yourself: “But what am I really making money on?” Many think that without an advanced cost accounting system it is impossible to answer, but that is not the case.
The problem isn’t the price. It’s how you build it
Theory and practice
Many companies are convinced they have a sales problem. “The market doesn't pay.” “Customers haggle over price.” “The competition is aggressive.”
Does the market decide the price? No. Your cost structure does
Theory and practice
Let’s continue our journey through informed business management.
Profitability by product line: what the financial statements don't tell you
Theory and practice
In previous posts we got to grips with the logic of the Break Even Point: now we’ll start to understand where the money is really made.
From calculation to control: the real value of the Break Even Point
Theory and practice
Every business owner knows the concept of “breaking even” but hardly anyone really uses it as a strategic compass.
How to truly understand the break-even point: the power of reclassifying the financial statements
Theory and practice
Of all the tools a business owner can use to understand whether the company is really making money or just spinning its wheels, reclassifying the financial statements is one of the most underrated.
The numbers that really matter: reading the financial statements to steer the business
Theory and practice
The balance sheet, the profit and loss account and the cash flow statement tell the story of the company: now it’s time to understand how to read them to make real decisions.