The discount rate is the proportion by which the list price is reduced to arrive at the selling price. Tracking average discount rates by rep, segment, and product helps sales leadership monitor pricing discipline and margin erosion.

Example: A SaaS product has a list price of $1,000/month. If a customer pays $850/month, the discount rate is 15%. If the average discount rate across all deals rises from 10% to 18%, leadership investigates whether margin targets are being met.