The largest discount is not always the best deal. Real profitability depends on the complete sequence from list price to final unit cost and selling price.
Confirm which list price applies, its currency, unit of measure and tax basis. If the supplier changes the list before discounts, apply the adjustment first. Comparing percentages built on different list prices can be misleading.
Progressive discounts multiply; they do not add. A 20% discount followed by 10% leaves 72% of the adjusted list price. Record the sequence exactly as offered so the effective discount remains auditable.
If you pay for 10 units and receive 2 free, the invoiced amount is spread across 12 units. If the discounted amount for the 10 paid units is €800, the effective unit cost becomes €800 ÷ 12 = €66.67, rather than €80.
Apply percentage-based tariffs or fees at the stage defined by the agreement. Divide total freight by the relevant number of units and add the resulting cost per unit. Keep recoverable and non-recoverable taxes separate so margin is calculated on a consistent basis.
Repeat the same discipline on the selling side: adjusted list price, customer discounts, free goods, fees and freight. Then calculate unit profit, margin and markup from comparable net values. A deal is ready for approval only when its complete economics—not just its headline discount—meet the target.