PHASE 13: PRICE INCENTIVES

Improve adherence to your pricing strategy by aligning it to the sales team’s Compensation Design & Quota Setting.

 

Sales people, for the most part, do what you incentivize them on. Unfortunately, that means that if they are incentivized on revenue only, this often leaves to heavy discounting, lower average selling price, and much lower profitability. Organizations that adopt a value-based culture focus on price integrity. Price integrity means giving sales reps a personal stake in price realization. Doing so in a way that is both motivating and robust is both an art and a science.

Rapid Diagnostic

1. Your compensation plan is designed to support your pricing strategy.

2. Your sellers are keenly aware of the impact of discounting on profitability.

3. Your compensation plans discourage discounting and promote value selling.

4. Your sellers understand their compensation plans and the relation to company profits.

5. There is a low percent of deals sold at the seller maximum discount rate.

6. Your A Players have a lower discount rate than your B Players.

7. Your B Players have a lower discount rate than your C Players.

8. You have calculated your win rate at list price and each tier of discounting.

9. Sales commission plans reduce if they give greater discounts to customers.

10. You produce financial modeling for profitability every time you update your Compensation Design and set Quotas.

Deliverables

• Price Incentive Assessment

• Price Incentives Strategy

• Price Incentive Quotas

• Communication Plan

• Financial Modeling

• Integration into your Compensation Design & Quota Setting

STRATEGY AREA
CONTENT TYPE
INDUSTRY
GTM Operating Plan Tool
December 4 2019
GTM Operating Plan Tool
VIEW
SBI KPI Builder
December 2 2019
SBI KPI Builder
VIEW
CS Tech Gap Visualization Tool
November 20 2019
CS Tech Gap Visualization Tool
VIEW
previous
1 of 141
right
Loading...
Pricing Strategy
Your Pricing Strategy Is More Than a Plan for New Logos—Why Renewals Matter
At times it may seem that the shiny new toy is always better.  A common mistake that many firms make is ignoring their existing customer base and focusing on marketing to and acquiring new logos.  There’s still value in your...
Read More
Sales Strategy
Is Your Value-Based Pricing Strategy Truly Value-Based?
Value-based pricing is constantly top of mind for B2B executives. Promises of higher profits and market share have been made credible by numerous success stories. Which team wouldn’t want to share in that success? There’s little wonder as to why...
Read More
Pricing Strategy
5 Reasons Why Your Pricing Vendor Needs Sales Expertise
Driving effective cross-functional interlocks is a best practice for B2B organizations looking to accelerate revenue growth. However, one interlock that often gets overlooked in go-to-market transformations is the relationship between Sales and Pricing. Too often, Sales views Pricing as a...
Read More
Pricing Strategy
If You Have No Problem with Generating Revenue, You May Have a Pricing Opportunity
Are you growing faster than your competitors?  Have you started the year off blowing out your plan?  If you answer yes, congrats, you have a good “problem” on your hands.   What CEO doesn’t want to grow even faster? It gets the...
Read More

Stay up to date with our latest insights, benchmarks, and more

SUBSCRIBE

Join our team of passionate professionals

VIEW CAREERS