Understanding the Effective Discount

This article explains the effective discount displayed in your agreement on the Reveel Platform.

The Agreement Monitoring and Agreement Comparison pages showcase your discounts for specific services. Simply hover your cursor over a discount to reveal the effective discount.

The contractual discount represents the discount specified in your active agreement, while the effective discount indicates the actual discount received, taking into account factors that may impact the contractual terms.

The effective discount is influenced by the minimum charges established by carriers. This is a crucial aspect of their pricing strategy, which can restrict customers from fully capitalizing on the discounts outlined in their agreements. The minimum charge serves as a price floor, ensuring that regardless of the discount percentage, the net charge for a service will not drop below this specified 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.