Definition
The average percentage discount off list price given across closed deals.
Formula
Average (List price - Actual price) / List price x 100
How to measure
For every closed deal, calculate the percentage discount from list price, then average across all deals in the period.
Why track it
A rising average discount rate can signal weakening pricing power or a sales team over-relying on concessions to close deals.
Example
A team notices its average discount rate creeping from 8% to 22% over two quarters and tightens discount approval rules.
FAQ
- What is Average Discount Rate?
- The average percentage discount off list price given across closed deals.
- How do you calculate Average Discount Rate?
- Average (List price - Actual price) / List price x 100
- Why track Average Discount Rate?
- A rising average discount rate can signal weakening pricing power or a sales team over-relying on concessions to close deals.