What is pocket price?

In short. Pocket price is what a company actually keeps from a deal after every discount, free month, rebate, payment term and other concession is taken off the list price.

Example in a B2B tech company

A $100,000 list deal with a discount and three free months leaves a much lower pocket price.

How it works

Start at list price. Take off the discounts on the invoice to get the invoice price. Then take off what does not show on the invoice: free months, free implementation, longer payment terms, partner fees and rebates. What is left is the pocket price. A price waterfall shows each step.

Why it matters

Two deals with the same headline discount can end at very different pocket prices.

Watch out for

Concessions that sit outside the CRM or quoting tool, in contracts or billing, are easy to miss.

Common questions

What is the difference between realized price and pocket price?

Realized price is the price the customer agrees to after negotiation. Pocket price goes one step further and also takes off the concessions that do not show on the invoice.

How do you raise pocket price without raising list price?

Make concessions conditional, cap free months and free services, and review the waterfall per segment.

Related terms

Price waterfall: The step-by-step view from list price down to pocket price, showing each discount and concession.
List price: The standard published or internal price before any discount.
Realized price: The price a customer actually agrees to after negotiation with sales.
Discount guardrails: Limits per segment on how far sales can discount without extra approval.

Browse all 60 terms in the pricing glossary.

Want a second opinion on your pricing? 30 minutes with a pricing architect. No charge, no pitch. Book your sparring session

Last updated: 14 October 2026.