Power BI for Pricing and Discount Management – How to Detect Price Leakage and Protect Margins
A company can meet its sales targets, acquire new customers, and increase revenue while gradually giving away a larger share of its margin. The reason is not always rising purchasing or manufacturing costs. Quite often, the problem lies in pricing: excessive discounts, individual commercial terms, uncontrolled deviations from the price list, or promotions whose actual impact is never analyzed afterward. Across a large number of transactions, even small pricing differences can have a significant financial impact over the course of a year. McKinsey has pointed out that in distribution, a 1% improvement in average realized price can have a disproportionately large impact on EBITDA because much of the additional revenue flows directly to the bottom line. Power BI makes it possible to see where the company is actually enforcing its pricing strategy and where margin is disappearing between the list price and the final invoice price.
