You fenced the price, so the discount moved into the scope

Discount approval tightened. Realised price held. Gross margin didn't move, because the concession is still being made, just in a currency nobody signs for.

By Steve 5 min read
Abstract bridge artwork for You fenced the price, so the discount moved into the scope

A business tightens its discount discipline. Approval thresholds go in, floor prices are published, deals below a margin gate need a second signature. Within two quarters the average discount off list has narrowed by several points, and the commercial team can prove it. Gross margin per delivered job is unchanged, or worse. The usual explanations get reached for first: cost inflation, a bad mix quarter, delivery inefficiency. Sometimes those are the answer. But there is a more common mechanism, and it is almost invisible in the reporting, because the reporting…

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