Price Realization
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Category:  
Analytical

Calculates the average revenue generated per closed deal over a given period.

What it Measures ?

How close selling price is to list price.

Relevant StakeHolders 

Pricing Analysts, Sales Finance

In-depth Use Case / Real-world Example

Average Deal Size provides insight into the typical value of your closed sales. For instance, if a manufacturing firm closes 20 deals in a month totaling ₹2 crores, the average deal size is ₹10 lakhs. This KPI helps identify trends in buyer behavior and the impact of upselling or bundling strategies. Larger average deal sizes may indicate more enterprise-level clients or successful value-based selling, while smaller sizes may suggest volume-focused strategies. In B2B manufacturing, tracking this metric helps sales leaders evaluate sales rep performance, segment customers, and refine pricing models. It also aids in forecasting: if deal sizes increase steadily, revenue targets can be met with fewer sales.

KPI Definition

Business Value

Movement Direction

Sample Formula

(Price Realized / List Price) * 100

Should Aim For
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