Transactional pricing
Stage 4 · Implementation
Transactional pricing
Transactional pricing analyzes actual invoice data to find where margin leaks through discounts, rebates and exceptions, and how consistent prices are across customers. It often finds money faster than any other pricing work.
Questions it answers
1How much margin are we giving away in discounts and rebates?
2Are similar customers paying very different prices?
3Do our rebates buy the behavior we want?
How it works
The steps teams follow in our programs and projects.
Step 1
Collect transactions
Invoice-level prices, discounts and rebates.
Step 2
Build the waterfall
From list price to pocket price.
Step 3
Find variance
Price spread across similar customers.
Step 4
Fix the rules
Discount authority, rebate design and controls.
What you get
The output
A price waterfall and a view of price variance by customer and segment.
Where AI helps
Where judgment decides
Crunches large transaction datasets and flags outliers.
Decides which discounts are justified and changes behavior.
From our client work
How clients apply it
Paraphrased and anonymized from recent programs and engagements.
Application 1
A business that had been "sales and rebate led for years" explored rebate leakage analysis as part of its move to value selling.
Application 2
Pricing programs combine transaction analysis with coaching, because reps often discount before the customer even asks.
Linked tools
The output of one tool becomes the input to the next.
Where it's used
Academy program
Pricing
See dates →Expertise
Pricing & Value
Explore →Expertise
Sales Excellence & Key Account Management
Explore →Problem it solves
Sales and rebate led for years
Read more →Problem it solves
Discounts leak margin
Read more →Situation
Moving from commodity to specialty
How we help →Situation
Reshaping the sales force
How we help →Questions about Transactional pricing
What is pocket price?
What you actually keep after all discounts, rebates and allowances.
Where do we get the data?
Usually the ERP or billing system; data quality is checked first.
Other tools in stage 4: Value Map · Price Change Analysis · Transactional pricing · Launch and campaign plan · Key Account Plan · Opportunity assessment and NPV
Want to use Transactional pricing on a live plan?
Book a 20–30 minute sounding board conversation with a senior consultant who has sat in your seat. No cost, no commitment.