Case Study: The Discount Nobody Approved (Client Wins)
A distribution CEO swore his margins were fine — the P&L said 34% gross. Then we pulled invoice-level data.
Sales reps had standing authority to discount up to 15%. Nobody tracked it. The average discount had crept to 11% and three reps were living at the cap on their biggest accounts.
What we changed:
Any discount over 5% needed a second signature
Every rep got a monthly "realization" scorecard
The three worst offenders had their cap cut to 7%
Realized margin recovered 280 basis points in two quarters — roughly $1.6M to the bottom line. Same customers, same products. Just discipline.
Who in your company can lower a price without asking anyone?