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Limerine

Glossary

Discount leakage

Discount leakage is the revenue lost to discounts beyond a company's own pricing policy. It is measured as the gap between realized price and the price the policy would have allowed.

Why it matters

It is made of many small exceptions, so it rarely appears in any one report.

How Limerine uses the term

We reconcile quotes, approvals, and invoices to size it by segment, seller, and product.

Related module: Pricing and quote-to-cash.

How to cite this definition

Limerine Research. "Discount leakage." Limerine Glossary, 2026. https://limerine.com/glossary/discount-leakage