Pricing

Pocket price

Also called: Net-net price · Realised price

What you actually keep from a transaction after every on-invoice and off-invoice reduction.

List price is the starting point, invoice price is what appeared on the document, and pocket price is what remains after rebates, ship-and-debit claims, promotional allowances, settlement discounts, freight absorption and anything else that reduces the money you keep.

The gap between invoice and pocket is routinely several percentage points and is almost never visible at the time of the pricing decision, because the reductions settle later and in other systems. That is how a deal gets approved as profitable and settles as a loss.

Managing on pocket price rather than invoice price is the single highest-leverage change available to most channel businesses. It does not require new pricing discipline; it requires the number to exist.

Still not clear?

Send it to us. We answer, and the good questions end up back in this glossary.

Ask us directly →

See the term in the product.

Thirty minutes, walking the mechanism you just read about through modelling, accrual, claim and settlement — against examples close to your own programmes.