Price realisation

Invoiced value over the same lines at list price on the invoice date. Against the agreed discount from the price agreement, the remainder is the unagreed discount, given line by line through overrides. Per customer, per product, per rep.

DefinitionInvoiced value over the same lines at list price on the invoice date. Against the agreed discount from the price agreement, the remainder is the unagreed discount, given line by line through overrides. Per customer, per product, per rep.

Needs a dated price list

Without one, every line before a price change looks discounted.

Realisation alone is not the finding

Seventy percent at an agreed thirty is on plan. The unagreed remainder is the leak.

How it is computed

Invoiced value divided by the same lines valued at list price on the invoice date, by customer and family, and against the agreed discount.

Example

A customer's lines at list would be $500,000. It was invoiced $410,000: 82 percent. Its agreement allows 12 percent off, so six points were given away line by line.

Where it goes wrong

List prices not dated. After a list increase, every old invoice looks heavily discounted.

Articles that use this term

Board and management reporting

Discount approval thresholds from price realisation data, not from a round number

How a commercial team sets the discount level at which a rep needs approval from what its own invoice lines show: the distribution of discounts given, the discount at which win rate stops improving, the reps and product lines where discounts cluster just under the current threshold, the revenue given away between the effective and the agreed discount, and the threshold per product line that follows, with the approval volume it will generate.

16 Sept 20263 min read How-to guides

How often should sales data be refreshed? A cadence per measure, not one for the tool

Why 'real-time' is the wrong answer to how often sales data should be refreshed, the cadence each measure actually needs, weekly for coverage and pipeline, monthly for share of wallet and concentration, quarterly for norms and segments, annually for definitions, what a refresh more frequent than the measure's cadence does to the reader, and the export schedule that follows.

16 Sept 20262 min read Board and management reporting

Price realisation by customer: invoiced price against list, and the discounts nobody approved

How a manufacturer or distributor measures the discount each customer actually receives from invoice lines against the list price at the time: realisation per customer per product line, the approved discount from the price agreement, the unapproved discount that is the difference, the customers whose effective price has drifted down through overrides, and the identity that ties realisation to the ledger.

16 Sept 20262 min read Data quality and reconciliation

Product taxonomy for analytics: lines, families and SKUs, and which level each measure uses

Why a product list with four hundred SKUs produces whitespace everywhere and a concentration figure that means nothing, the three levels a product taxonomy needs, line, family and SKU, which measure is computed at which level, the rule that a SKU belongs to exactly one family and a family to exactly one line, the dated mapping that survives a range change, and the identity that revenue sums identically at every product level.

16 Sept 20263 min read Board and management reporting · Education

Renewal price uplift realised against proposed, by institution: the increase that was negotiated away

How an education provider measures what happened to its renewal price increases from the renewal proposals and the signed orders: uplift proposed per institution, uplift realised, the gap by account manager and by institution type, the institutions that renewed at a discount to last year, the correlation with utilisation from the provider's own data, and why the average uplift reported to the board is made of a few full increases and many that were given back.

16 Sept 20262 min read Board and management reporting

Revenue leakage: the seven places it hides in a B2B ledger

Seven kinds of revenue leakage that a B2B company's own ledger and contracts can find: unagreed discounts, contracted price not applied, unbilled deliveries, credits without a cause, contracted volume not ordered, early payment for no discount, and services delivered outside the scope. For each, the join that finds it, the identity that proves the figure, and a worked total that most companies would not believe until they saw the lines.

16 Sept 20263 min read