RevTrax Releases Discount Benchmarking Research

RevTrax, a leading offer management platform for CPG and retail brands, announced the release of its Discount Benchmarking Report, featuring stats across the food and beverage, health, personal care, baby and pet industries to help brands identify their ideal discount to the Manufacturer Suggested Retail Price (MSRP). The report sets benchmarks across consumer industries and shares insights on how to maximize efficiency by adjusting discount rates.

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“The detrimental rivalry with discounting, couponing and promotional activity is hurting profitability, and we’re eager to help brands make smarter discounting choices with this year’s research.”

“Brands have a tough time learning what’s a good discount and what’s a bad one, and because of this, they’re facing margin pressures unlike anything they’ve faced in the past,” commented Jonathan Treiber, Co-Founder and CEO of RevTrax. “The detrimental rivalry with discounting, couponing and promotional activity is hurting profitability, and we’re eager to help brands make smarter discounting choices with this year’s research.”

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The research was conducted to investigate how varying percentage discounts to MSRP impact Cost Per Unit Moved (CPUM), a critical data point for brands when considering margin. Key report findings include:

  • Food & Beverage: Brands in this industry are over-discounting by 13-16 percentage points.
  • Baby: Brands in this industry are over-discounting by 8-10 percentage points.
  • Pet: The average industry discount rate of 18% is incredibly inefficient.
  • Health: Health Brands can afford to lower discounts by 4-7 percentage points.
  • Personal Care: Brands in this industry should be discounting between 11-14%, or 6-9 percentage points lower than the average discount to MSRP of 20%.

RevTrax makes it easier for marketers to deliver smarter offers through its Offer Management Platform (OMP) and helps brands identify the ideal discount for their consumers.

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