The price list has one line. The invoices have three hundred prices.
Most firms can tell you their list price and their average discount. The distance between those two facts is where a surprising amount of margin quietly lives.
SBy Steve··5 min read
Ask a management team what they charge and you will usually get a clean answer: a list price, a standard discount, maybe a tiered structure for larger accounts. Ask instead what each customer actually pays, net of everything, and the clean answer dissolves. In most businesses that have been trading for more than a few years, the realised price for the same product or service varies far more widely across the customer base than anyone at the top believes, and the variation rarely maps onto anything strategic. This is not…
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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.