The Hidden Cost of Low Utilization, With Carson Pierce

About this Episode In this episode of the Agency Profit Podcast, Marcel is joined once again by Carson Pierce to unpack one of the trickiest dynamics in running a service business: utilization. While many agency owners understand the surface-level math of underutilization, Carson and Marcel dig into the hidden and often overlooked costs that come with it: from over-servicing clients and bloated internal projects, to lost efficiency, disengaged team members, and a dangerous “new normal” of lower productivity. They also highlight the long-term financial and psychological impacts, such as reduced enterprise value, diminished cash reserves, and a leadership mindset that shifts from playing to win to playing not to lose. Through real-world analogies, candid lessons from Parakeeto’s own journey, and a clear framework for modeling utilization, this conversation gives agency leaders practical tools and perspective to spot and manage the true costs of low utilization before it quietly erodes profit, culture, and growth potential.