Free Tool · Pricing, Profitability & Portfolio

Price Waterfall & Pocket Price Builder

List price is a hope. Pocket price is the truth. Build the waterfall.

List price is a hope; pocket price is the truth. Add every deduction in the order it applies — invoice discounts, cash discounts, rebates, schemes — each on its correct base, and see what you actually keep per unit.

For: Commercial Head·Free — no sign-up for results·Related service: Pricing & Revenue Management
Deductions, in the order they apply
Bases matter: a 2% cash discount applies to the invoice value after earlier discounts, while a retrospective rebate usually applies to list. The tool keeps them distinct — the classic waterfall error is applying everything to list.
Gross-to-net
List price₹1,000
Invoice discount (8% of running)−₹80 → ₹920
Cash discount (2% of running)−₹18 → ₹902
Retrospective rebate (4% of list)−₹40 → ₹862
Dealer scheme (3% of running)−₹26 → ₹836
Pocket price₹836
Realisation83.6%
Realisation under ~85% usually means exceptions have become the norm. Set an exception threshold: any deal below a chosen pocket price needs commercial-head sign-off, not salesperson discretion.
Your numbers stay in your browser until you choose to download or share.

How it works

Deductions apply sequentially or on list — a 2% cash discount applies to the invoice value after earlier discounts; a retrospective rebate usually applies to list. The tool keeps bases distinct because that is where waterfalls go wrong.

Realisation = pocket price ÷ list price. Below roughly 85%, exceptions have become the norm.

The policy output: set an exception threshold so any deal below a chosen pocket price needs commercial-head sign-off, not salesperson discretion.

Worked example

₹1,000 list with 8% invoice discount, 2% cash discount (running), 4% rebate (on list) and 3% scheme (running) pockets ₹832 — 83.2% realisation. The sales team believed it was 'about 90%'.

Illustrative figures, not a client outcome.

Questions, answered

Where do freight and returns go?

They are cost lines, not price deductions — they belong in the profit-leakage bridge (P01). Keep the waterfall about price realisation only.

How do I get the deduction data?

From invoice-level data: export a month of invoices and compute each deduction as a percentage. Most ERPs can produce this in an afternoon.

Version 1.0 · Reviewed 2026-10 · Methodology is fixed and version-controlled; results depend on your inputs.

Keep going

All tools
P01
Profit Leakage & Margin Pressure Analyzer
Gross-to-contribution margin bridge with leak ranking and scenarios.
P03
Discount Damage Simulator
Contribution impact, volume-preservation requirement and 0–30% discount curve.
P04
Price Increase & Volume Trade-Off Simulator
Break-even volume loss, contribution comparison and elasticity sensitivity.

Pocket price known. Now govern it.

BLEZZINGS runs this analysis inside a focused engagement — with your data, your market and a plan to act on it.