B2B Sales Glossary

Price Realization

Price realization is the actual selling price achieved after discounts, divided by the list price. It is a key margin-protection metric that exposes where revenue leaks to discounting and concessions.

What is price realization?

Price realization typically runs between 75% and 95% in B2B SaaS — anything below that suggests reps are over-discounting to close deals. Tracking realization by rep, segment, and deal stage reveals where pricing discipline is weakest. The metric is closely watched by CFOs and is often built into commission plans: higher realization → bonus accelerators; below-threshold realization → manager approval required. The opposite phenomenon is "price erosion," where realization trends downward across multiple quarters and signals deteriorating pricing power.

Examples

→List price $100K, deal closed at $82K → realization = 82%
→Q3 average realization 88%, Q4 fell to 81% — investigate discount creep
→Enterprise rep at 92% realization, mid-market rep at 71% — coaching opportunity

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Related terms

Sales Velocity

Sales velocity = (Number of Opportunities × Average Deal Value × Win Rate) ÷ Sales Cycle Length. It is the single most predictive metric of future revenue growth — moving any of its four levers compounds the others.

Conversion Rate

A conversion rate is the percentage of leads (or visitors, or opportunities) that progress from one stage to the next. In B2B, the most-watched conversion rates are MQL-to-SQL, SQL-to-Opportunity, and Opportunity-to-Closed-Won.

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