Problems › We Keep Discounting to Win Deals › Fintech
Routine discounting is usually a proof problem and an incentive problem, and almost never a price problem. This page works through it for fintech companies specifically — including an unedited excerpt from a real analysis of a fintech.
Routine discounting is usually a proof problem and an incentive problem, and almost never a price problem. The version of this question that applies to fintech companies is not the generic one. Lending fixed the P&L and converts revenue worth a 7x multiple into revenue worth a 2x multiple — so an answer that ignores blended take rate will be confidently wrong. The analysis has to start from charge-off rate and contribution margin rather than from revenue.
When discounting becomes normal, the price has effectively been reset to the discounted level and the list price is decoration. That has a cost beyond the margin: it tells the market what you actually charge, and it is very hard to reverse.
The causes are consistent. The value is not proven, so price becomes the only variable left to discuss. Or the sales incentive rewards closing over margin, in which case discounting is exactly the rational behaviour. Or discretion is unlimited, and unlimited discretion is always used.
The diagnostic is the distribution. If discounts cluster at the end of a quarter or at particular individuals, the cause is incentive and authority, not price.
These three together are the signature. One on its own usually points somewhere else.
✓ Discounts spike at period end
✓ Discount levels vary widely between salespeople for similar deals
✓ Sales asks for price authority rather than for better proof
The move that usually makes it worse. Lowering list price to reflect reality, which resets the anchor and produces the same discount off the new number within two quarters.
It is for you if you run or finance a fintech and discounts spike at period end. It is the situation where the numbers are available but nobody has put them in an order that produces a decision.
It is not for you if Percision is the wrong tool if you already know the answer and only need execution capacity, or if the business is pre-revenue — then the constraint is evidence about the market, not analysis of your own figures. Percision is not a lawyer, tax advisor, auditor, licensed appraiser, clinical or regulatory filer, or an AI implementation shop. It does not do HR casework, creative-only brand work, or impersonate a named consulting firm. It is a strategy analysis engine — not a template library. Also wrong if you need facilitation, politics, or someone to sit with a lender or buyer. Those are human jobs.
Percision is not a lawyer, tax advisor, auditor, licensed appraiser, clinical or regulatory filer, or an AI implementation shop. It does not do HR casework, creative-only brand work, or impersonate a named consulting firm. It is a strategy analysis engine — not a template library.
Below is an excerpt from a real run of this analysis on a fintech. It is a sample profile rather than a customer, and it is unedited engine output — this is the format you get, on your own numbers.
The subject is Verrano Pay, a sample company profile used for testing rather than a customer — $84M net revenue, 28,000 merchants, $9.4B of payment volume.
Excerpt from a real Percision run · Quick Market Scan · sample company profile
The move. Scale lending book from $110M to $260M advances using existing distribution and data assets while maintaining charge-off rate below 9.0% covenant.
The leak it closes. Reduces 26% partner rev-share leakage by increasing merchant stickiness through lending relationship
The assumption it rests on. Platform partners maintain 180-day termination clauses without exercising exit — the engine put the probability at 0.7.
| Investment required | $0 incremental equity |
| Expected return | 4.5x |
| Revenue, year 1 | $24.1M lending revenue (30% growth) |
| Revenue, year 2 | $31.3M lending revenue (30% growth) |
| Revenue, year 3 | $40.7M lending revenue (30% growth) |
| Exit criteria | Terminate if charge-off rate exceeds 8.7% for two consecutive quarters OR if any platform partner terminates contract |
This is one move out of a full analysis. Read a complete report — every page, no email required.
This question routes to Pricing & Revenue Optimization, one of 29 engagements the platform runs. For fintech companies it works through blended take rate, charge-off rate, contribution margin and CAC by channel, then produces the sequence rather than a list of options — which move first, what it funds, and the observation that would say the sequence is wrong.
You watch the analysis get built before paying anything. Read a complete report here if you would rather see the depth first.
Cap the discretion and pay on margin rather than on revenue. Discounting is a rational response to a quota measured in revenue with unlimited price authority attached.
No — as a deliberate, structured exchange for something you want, such as term, volume or a reference. As a reflex at the close of a negotiation, it is margin given away for nothing.
Move them at renewal with notice and a reason, and accept that some will leave. The alternative is a permanent two-tier price the rest of the market eventually discovers.
Materially, yes. Lending fixed the P&L and converts revenue worth a 7x multiple into revenue worth a 2x multiple — which changes both the diagnosis and the order of the fixes. The metrics that decide it here are blended take rate, charge-off rate, contribution margin, and an answer built on industry-general benchmarks will usually point at the wrong one first.
Less than most people expect. Your last twelve months of revenue and cost split the way you already split it, plus whatever you hold on blended take rate and charge-off rate. The analysis is explicit about what it is assuming where your data stops, which is more useful than waiting for numbers you may never have.
Percision is the wrong tool if you already know the answer and only need execution capacity, or if the business is pre-revenue — then the constraint is evidence about the market, not analysis of your own figures. Percision is not a lawyer, tax advisor, auditor, licensed appraiser, clinical or regulatory filer, or an AI implementation shop. It does not do HR casework, creative-only brand work, or impersonate a named consulting firm. It is a strategy analysis engine — not a template library. Also wrong if you need facilitation, politics, or someone to sit with a lender or buyer. Those are human jobs.
Percision is not a lawyer, tax advisor, auditor, licensed appraiser, clinical or regulatory filer, or an AI implementation shop. It does not do HR casework, creative-only brand work, or impersonate a named consulting firm. It is a strategy analysis engine — not a template library.
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