On a quote, is a 10% discount or a flat 500 off the better offer?
It depends on the subtotal. On a 4,800 SAR job the flat 500 is worth more than 10% (480), so the client pays less. The two are equal at exactly 5,000, and above that the percentage is the more generous one. Try both in the tool and compare the totals before sending.
The comparison on one job
Take a brand identity project priced at 4,800 SAR, with tax at whatever rate you enter, 15% in this example. The tool subtracts the discount from the subtotal first and then works out tax on what is left, so the discount also shrinks the tax.
10% off: the discount is 480.00, the amount after discount 4,320.00, tax 648.00, total 4,968.00 SAR.
Flat 500 off: the amount after discount is 4,300.00, tax 645.00, total 4,945.00 SAR.
The client is 23.00 SAR better off with the flat amount.
Where the answer flips
A fixed discount stays the same whatever the job size, while a percentage grows with it. The break-even point is the subtotal at which 10% equals 500, which is 5,000. At that figure both options give the same total of 5,175.00 SAR. On a smaller job, say 3,500, the gap is wider: the percentage leaves a total of 3,622.50 and the flat amount 3,450.00.
- Subtotal under 5,000: the flat 500 is bigger.
- Subtotal of exactly 5,000: they are equal.
- Subtotal over 5,000: 10% is bigger.
Trying both in the tool
- Enter the lines in the Quotation generator until the subtotal shows in the totals summary.
- Under ‘Discount type’ choose ‘Percentage %’, type 10 and note the total.
- Switch the type to ‘Fixed amount’, type 500 and compare the new total.
- Keep the one you want to offer, then create the PDF.
On the PDF a percentage discount prints as a row such as ‘Discount (10%)’, while a fixed one prints as ‘Discount’ with no rate. Either way an ‘After discount’ row follows, then tax, so the client sees what they saved in riyals.
The number is not the whole story
A percentage sounds bigger in a sales message on a large project, and a flat amount is easier for a client to grasp on a small one. If you plan two discounts in a row, such as a seasonal one and then one for paying upfront, note that the tool takes a single discount per quote. Work out the net effect of both first with the Discount calculator, enter it as one fixed amount and explain the breakdown in the notes.
Common questions
Can a fixed discount be larger than the subtotal?
No. The tool rejects it and asks for an amount that does not exceed the subtotal.
Is tax calculated before or after the discount?
Always after. The discount comes off the subtotal, then tax is worked out on the remainder.
Can I discount just one line?
The tool's discount applies to the whole quote. To discount a single line, enter its reduced price directly, or mention the original price in the description.