The discount simulator is a tool designed to help users analyse the impact of applying discounts on profitability for specific matters.
Here's how it works (or 📹 watch a brief demo video here)
Accessing the Simulator: You can access the discount simulator by selecting a new column labeled "Discount Simulator" within the dashboard.
Setting a Hypothetical Discount: You can input the desired discount percentage you want to simulate. For example, if you want to see the effects of a 30% discount, you can enter that value and press the "calculator" button.
Profitability Analysis: Once the discount percentage is set, the simulator calculates the projected profitability based on the remaining unbilled time associated with the matter. It provides a detailed report showing:
- The revenue before and after any discount is applied
- The gross profit before and after any discount is applied, and
- The profit margin before and after the discount;
allowing users to see how the discount affects overall profitability.
Batch Analysis: you can also run batch analyses for multiple matters simultaneously. This feature allows you to apply the same discount across several matters for a single client, providing an overall profitability score for the combined matters. To do that, select the relevant matters (using checkboxes on the left hand side of the matter list) and enter the desired blended discount percentage in the dialog box that appears in the bottom centre part of the screen.
Flexibility and Historical Data: The simulator can analyse different time frames and revisit previous analyses, making it a versatile tool for managing client relationships and pricing strategies.