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Understanding the Effective Discount

This article explains the Effective discount displayed in their agreement on the Reveel Platform

Both the Agreement Monitoring and Agreement Comparison pages display your discounts for a specific service. By hovering your cursor over a discount, the Effective Discount will be revealed

The Contractual Discount is the discount outlined in your active agreement, whereas the Effective Discount reflects the actual discount received, accounting for factors that affects the contractual terms

The Effective Discount is affected by the minimum charges set by carriers. This is a key part of their pricing strategy that limits customers from fully benefiting from the discounts in their agreements. The Minimum Charge acts as a price floor, meaning no matter how high your discount percentage is, the net charge for a service will never fall below this set amount

On our example from the image above, though the agreement states a 41.5% discount on their 1-5Ibs ground commercial, they are only realizing a 27.75% discount because some of their packages are hitting the minimums.