Sales people, for the most part, do what you incentivize them to do. Unfortunately, that means that if they are incentivized on revenue and it’s easier to make two heavily discounted deal sales than one full-priced one, your average price and profitability will take a hit. Organizations that adopt a value-based culture focus on price integrity, and that means giving sales reps a personal stake in price realization. But doing so in a way that is both motivating and robust is an art and a science.
- Price Incentives
- Price Incentive Quotas
- Communication plan
- Financial models
With this phase completed, it is time to move on to Phase 16: Pricing KPIs.