PHASE 10: STRUCTURED DISCOUNTING
Discount strategically to increase sales volume and average deal size.
Discounting without a rationale or knowledge of the impact is not good. Discounting consciously for a purpose linked to your corporate strategy is good. Such discounts should be considered as part of your pricing strategy and allow the fine tuning needed to optimize profits. Deciding in which situations you are willing to give a concession, and more importantly, what you expect in return for that discount is the first step to larger deals and higher win rates. Discounting without this knowledge can be hazardous to the business.
1. You know your average discount rate.
2. You have quantified current discounting by buyer type and market segment.
3. Discounts are not always expected by your customers.
4. You have quantified the reasons and frequency customers ask for discounts.
5. You have assessed each discount reason for impact on win rates.
6. You have incorporated all pricing reasons into your pricing and discount strategies.
7. You have quantified discount bands by market segment.
8. You are constantly assessing the market for threats that would increase the need for discounting.
9. You have approval mechanisms in place to escalate discount approvals.
10. Your discounting strategy is incorporated into sales playbooks and related tools.
• Discounting Assessment
• Discounting Methodologies
• Price Banding and Modification
• Discounting Playbook and Selling Tools