Price Space · Free tool

How much are your discounts really costing you?

Six numbers, two minutes. See the discount dollars going out the door, how much sits above your own policy, and what that does to profit.

Your numbers

Rough is fine.
Off list or standard price, on the invoice.
The level a rep can give without escalation, or your target.
Rebates, free freight, extended payment terms, free services.

What it adds up to

Discount dollars above your own policy, per year
$0
Total on-invoice discounts given
Of that, above your policy
Off-invoice give-aways
All discounts and give-aways
Operating profit today
If you held a quarter to half of the above-policy discount
Profit added per year
Change in operating profit
This is an estimate, not a promise. It uses your inputs and simple math shown below. Your real number depends on deal mix, customers and competition. The Discount Leakage Audit finds the actual figure, deal by deal.

Two ways to take this further

Find the real number

A 20-minute call about a Discount Leakage Audit. We look at your actual deals and show where the money goes.

Book a 20-minute call

Keep your results

Get a one-page PDF of these numbers to share with your team.

How the math works

Discount dollars

Revenue is net of discounts, so we gross it back up. Discounted revenue ÷ (1 − average discount) gives the list value of those deals. The gap between list and what you collected is the discount given. The part above policy uses the same math with (average − policy).

Why a quarter to half

Some above-policy discounts win deals you'd otherwise lose, so you won't hold all of it. We show a conservative range of 25% to 50% held. It is an assumption for planning, not a measured result.

Why profit moves more than revenue

Discount dollars you keep have no extra cost attached, so they drop straight to operating profit. That's why a small price gain is a large profit gain when margins are thin.

Privacy: the calculator runs in your browser, and the numbers you enter are never sent to us. The PDF is made on your device. If you ask for it, we keep only your email so we can follow up about your results. We won't add you to a newsletter. Ask us anytime and we'll delete your email. Privacy policy