Without transaction pricing a company may be flying blind.
Regular customers receive discounts to list price. From the size of these discounts, managers can identify which customers are most profitable, right? Well, not really. The actual cost of sales - even for a commodity product - varies from customer to customer, with differentials determined by a range of factors from transport costs to packaging, to costs of sales visits. At the same time, the payment received may differ from the invoice to reflect factors such as additional volume discounts or prompt payment refunds.