Pricing Power and Discount Leakage Audit
Find where revenue leaks through discounts.
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Show how much revenue I lose to discounts and where pricing is weaker than it needs to be. Price list: [PRICE_LIST]. Sales or invoice data with discounts: [SALES_DATA]. Who can approve discounts: [DISCOUNT_AUTHORITY]. BEFORE (what the data shows), as tables: 1. Average discount by product, by customer segment, and by salesperson or channel. 2. Share of deals discounted. 3. Total revenue given away = sum of (list price - actual price) x quantity, with the arithmetic for one example line. 4. Discounts with no stated reason, as a count and an amount. Call out the three largest leaks. AFTER (a better policy): 1. A tiered discount rule set with what must be given in return for each tier (longer term, prepayment, volume, case study), who approves, and a floor price. 2. The revenue effect if the average discount fell by one-third, calculated from my numbers. 3. Three scripts for holding price in a negotiation, of 40 to 60 words each. 4. Signs I could raise prices (high win rate, no price objections, waiting list). Mark every assumption.
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BEFORE (from the sales data): average discount 14%; 62% of deals discounted; Salesperson C averages 22%; 9 deals discounted with no reason given. Revenue given away: $48,300 (list price minus actual). Largest leaks: (1) end-of-quarter discounts, 19% average; (2) bundles for existing customers, 17%; (3) deals under $5,000, 21%. AFTER (policy): up to 5% free; up to 10% needs a 12-month term; up to 15% needs prepayment and manager approval; floor price 80% of list. If the average fell by one-third (14% to 9.3%), revenue would rise about $16,100 on the same volume (estimate, assumes no lost deals). Script for holding price: "I can't change the price, but I can add onboarding sessions if we sign a 12-month term."
Illustrative only, made-up data. Your results will differ and must be reviewed.