Pricing guide
How Discounts Hurt Profit
A 20 percent discount can erase most of the margin.
Show the extra volume required to recover from a discounted price.
Run the calculatorThe margin problem
When cost stays the same, the discount comes out of the profit dollars left after cost.
The better move
Use smaller scope, delayed timing, or payment terms before cutting the same deliverable.
A practical way to use this guide
Start with one real offer, client, or pricing decision instead of a generic average. Write down the current price, the work included, the unpaid time around delivery, and the payment timing. Then run the linked calculator using conservative inputs. The goal is not to get a perfect number; it is to see which assumption has the most power over profit.
The result can mislead you if the scope is vague, the client pays late, support work is not counted, or the price is being compared without taxes and owner pay. When the calculator exposes a weak price, the next step is usually to change scope, terms, or delivery rules before changing the headline price.