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
What it adds up to
That's a finding in itself. If you can't see these numbers, you can't manage them, and margin slips out one deal at a time. We filled the gaps with planning assumptions (not your data), so treat the result as a rough signal.
We can help you find your real numbers. Book a 20-minute call and we'll show you where to look.
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.
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.
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