PowerBand Parts, a $310 million company, discovered its lowest-value customers were getting 14% discounts while high-value ones paid full price. Bill Canady found the pattern in years of sales data and says most companies have the same backwards discount structure.
Let me start with the proof here. PowerBand Parts. We've been talking about that all along. $310 million of revenue, 32% gross margin, 8% EBITDA. The business I've been using in our case all season. Somewhere in the second year of that hold, one person pulled a report nobody had asked for. The discount ledger. Every discount every salesperson had granted going back years, sorted by customer segment. I tell you, it's shocking when you look at these. I suggest you go pull yours, see what you find. What came back to that was the field was running an average of discount of 14% on Quad 4 book. 14%. The lowest valued customers buying the lowest value products at the best prices in the company. You heard that right. The worst getting the most. The worst business was also their cheapest business, and it'd been that way for years.
