Metrics · Finance · Monetization · Quarterly · %

Price Realization Rate

The percentage of list price actually collected after accounting for discounts and concessions.

Formula

Actual revenue collected / List price value x 100

How to measure

Divide total revenue actually collected across deals by what that same set of deals would have been worth at full list price.

Why track it

Price realization exposes the gap between headline pricing and what the business actually captures, informing whether list prices need to change.

Example

A company finds it only realizes 78% of list price on average once volume discounts are factored in.

Price Realization Rate — Growth metric · Cofounderbase