It’s 8:30 PM. Your CFO sends an email: Q3 margin growth came in at 1.8%—well below the 4.7% increase you implemented just months earlier.
The pricing strategy didn’t fail. Something else did.
And it’s likely what we call discount drift—the slow, often invisible erosion of your pricing power.
Discount drift doesn’t show up in dashboards. It doesn’t set off alarms. Instead, it happens gradually, over months or even years:
No single exception is catastrophic. But when compounded across hundreds or thousands of accounts, the result is millions in quietly lost margin.
This isn’t a pricing failure. It’s a visibility problem.
Most companies rely on Excel and quarterly dashboards to monitor pricing. But those tools are built for reporting, not pattern detection. They can tell you average gross margin or customer profitability—but they can’t tell you:
Catching discount drift requires comparing every customer to their true segment peers, spotting deviations that actually matter, and quantifying their financial impact.
That’s beyond human capacity—and it’s why AI isn’t just helpful here. It’s necessary.
Think of this not as a new pricing system, but as a background analyst that works 24/7, quietly running pricing logic checks on your behalf.
It doesn’t recommend broad price increases. It doesn’t overwrite rep discretion. It simply flags when the math—and the logic—stop making sense.
Here’s how it works:
The output isn’t a dashboard. It’s a short, clear report:
“Customer A is receiving Tier 1 pricing despite a 41% drop in volume. Aligning to peer average restores $27K in annual margin.”
After analyzing tens of millions of transactions across industries, we’ve seen three archetypes emerge:
The margin difference between Group 1 and Group 3? For a $100M business, it’s $3–5 million annually.
The term “discount drift” might sound innocuous. It isn’t. It is a silent killer and costs companies millions. Most drift isn’t the result of bad behavior. It’s the natural byproduct of time, turnover, and distraction.
But when drift goes unaddressed, the consequences aren’t just financial—they’re relational.
When done right, fixing discount drift builds trust—not tension. It ensures your best pricing goes to your best partners, and that exceptions have a reason—not a legacy.
We call our internal engine the Discount Drift Manager—but what matters isn’t the name. It’s the function.
It runs off data you already have:
No replatforming. No change to quoting tools. Just a background process that monitors, flags, and helps you fix pricing logic gaps before they snowball.
Unlike pricing software that focuses on automation or approval workflows, this assistant lives in the realm of continuous visibility—quietly protecting your margin while your team runs the business.
The margin environment isn’t forgiving. Material costs fluctuate. Buyers push harder. Sales teams are stretched.
But discount drift is different: it’s self-inflicted. And that makes it solvable.
Companies using this kind of AI assistant typically see:
Final Thought: Your Pricing Strategy Deserves a Watchdog
Most pricing strategies are well-intentioned. They’re structured, modeled, and rolled out with discipline.
But time erodes logic. Exceptions compound. Visibility fades.
The question isn’t whether you have discount drift. You do.
The real question is: How fast can you find it, fix it, and prevent it from coming back?
You don’t need a new pricing system.
You need a quiet assistant that helps you protect the one you already have.