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.
Formula: for each deal above policy, list price × (discount given − discount allowed), summed.
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 area of work: Pricing and quote-to-cash.
How to cite this definition
Limerine. "Discount leakage." Limerine Glossary, 2026. https://limerine.com/glossary/discount-leakage