In this episode, Bud, Mike, and “Professor” Ross take the red pill and dive into the uncomfortable truth behind supplier discounts. You may have crushed your volume goals, but are you actually making more money? The team breaks down price elasticity in plain terms, exposes the math behind margin erosion, and explains why a 50% increase in volume might not even be enough to break even.

Whether you're a sales rep, team lead, or in the C-suite, this episode will reshape how you think about discounting and its real impact on your bottom line.

🔥 What We Cover:

📉 Why selling more beer doesn’t always equal more profit

🧠 What price elasticity is — and why it matters to every discount decision💸 The math behind 50/50 discount splits (and why they usually suck)

🧾 How to evaluate if a discount actually made you money

✅ When discounts can work — and how to structure them strategically

📊 Real-world examples where volume went up and profits tanked

🐼 What a “sad panda donation” looks like (and how to avoid it)

📥 Bonus: Want the discount elasticity calculator Ross used?

Email us at [email protected] and we’ll send it your way.

Chapters

00:00 Understanding Discounts and Pricing Strategies

05:13 Price Elasticity Explained

09:16 Analyzing Supplier and Distributor Margins

12:07 The Impact of Discounts on Profitability

17:10 External Factors and Market Dynamics

21:28 Conclusion and Key Takeaways

24:06 Negotiating Discounts and Margins

26:30 Understanding Discount Structures

29:24 Analyzing Historical Discounts

32:38 The Cost of Volume vs. Profit

35:40 Supplier Dynamics and Market Share

39:32 Strategic Conversations with Retailers

42:45 The Role of Discounts in Competitive Pricing

45:38 The Impact of Supplier Decisions on Distributors

48:02 Navigating Supplier Discounts and Relationships

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About Tapped In Sales:  

Tapped In Sales is a podcast dedicated to beer distributors and beverage industry professionals who are looking to elevate their sales strategies and drive profitability. Hosted by industry experts Bud Dunn and Mike Hall, we dive deep into real-world stories, actionable insights, and the latest trends to help sales teams and managers unlock their full potential. Each episode blends data, strategy, and motivation, making complex topics easy to understand and implement.

This podcast is powered by VXP Tech – the leading Sales Strategy Management system designed for beer distributors. VXP simplifies the complexities of goal setting, variable compensation, and sales team performance, helping you master your market and grow profits, case by case.

Stay tuned for expert advice, fresh perspectives, and tools to sharpen your sales approach!

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