Granting a cash discount or rebate gives away margin — unless you factor it in beforehand. With a small buffer your target price survives the discount.
The problem with discounts
Give 3% cash discount on a price that is already tight and the discount comes straight off your margin. With small margins that can wipe out the profit entirely.
The fix: a buffer
Factor the discount in upfront by dividing your target price by (1 − discount): list price = target price ÷ (1 − discount %). Example: €100 ÷ (1 − 3%) = €103.09. After a 3% discount you're back at your €100.
Buffer for multiple discounts
If you grant a cash discount and a volume rebate, build in both buffers. Important: the buffer belongs in the calculation before VAT — as its own step between base and net price.
Buffer as its own step
PriceCalc Pro's 5-step calculation includes a dedicated buffer for cash discounts and rebates — so your margin stays stable even after a discount.
See PriceCalc Pro →