Increase Your Profit through Discount Optimisation

For many companies, discounting and cost-to-serve practices have evolved over time without consistent control. This results in significant, but often invisible, profit erosion. By systematically optimising discounts and the costs associated with serving customers, you can unlock an immediate and sustainable improvement in your bottom line.

Our experience shows that companies typically see a 2–3%, sometimes more, improvement in net average prices through discount optimisation and an additional 0.5% gain from cost-to-serve optimisation. These improvements flow directly to your profit line.

Did you know?
If your products have a 50% contribution margin and you give a 20% discount, you must sell 67% more just to achieve the same profit as selling at full price. That’s the high cost of unmanaged discounting.

Let us help you stop profit drain and potentially even shorten your sales cycles.

How We Optimise Discounts and Cost-to-Serve

Our consultancy service is built on data-driven analysis and practical implementation. We offer a structured approach that ensures both quick wins and long-term improvements:

1.) Uncover Hidden Patterns
We start with deep data analysis to visualise how your current discounting and cost-to-serve practices are impacting your margins. Tools include:

  • Discount plots that clearly illustrate inconsistencies and excessive discounting across client types and turnover levels.
  • Price waterfall analyses that map every discount and rebate draining your profit.
  • Cost-to-serve assessments that expose hidden customer service costs and inefficiencies.

2.) Redesign and Implement
With insights in hand, we work with your commercial and sales teams to:

  • Establish clear discount structures and policies.
  • Align sales team behaviour and bonus systems with profit goals.
  • Create strategies to influence customer behaviour and direct clients towards low-cost, high-value activities.

3.) Deliver Results
Together, we manage the change program, ensuring improvements are not only designed but also fully adopted. Our collaborative model minimises resistance and maximises sustainable gains.

👉 Contact us for more information on how we can reduce your discounts

The Case for Discount and Cost-to-Serve Optimisation

Common Problems We Solve

Many organisations face:

  • Excessive client discounts without clear justification.
  • Significant variations in discounts for similar customer types.
  • Discounts based on outdated agreements or lacking allocation transparency.
  • Overlooked costs of serving customers, leading to unprofitable relationships.
  • Lack of governance and unclear sales incentives driving value leakage.

The Benefits You Can Expect

By working with us, you’ll gain:

  • Transparent, rational discounting decisions based on hard data.
  • Stronger governance and consistent enforcement of discount policies.
  • Improved sales team alignment, with incentives focused on profitable behaviours.
  • Reduced operational costs through smart cost-to-serve strategies.
  • A clear roadmap to increase earnings within months of implementation.

Why It Works

Most companies are surprised at which clients actually cause profit leaks. Our process gives you the facts and the tools to act decisively, turning loss-making accounts into profitable ones or re-evaluating client relationships where necessary.

Clients appreciate the clarity. When the case is well-prepared and fairly presented, even customers accept adjustments, knowing it reflects professional business practice.

👉 Contact us to discuss your discount and cost-to-serve potential