SOFTWARE PROFIT STREAMS™
Discount Analysis
Price Policies: Discounts!
A discount is an offer to sell the solution at a price lower than the regular price. Indiscriminate use of discounts must be avoided to prevent creating a perception that customers can probably get a discount. Customers look for information about what other customers paid for the solution.
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By proactively setting price policies, you establish expectations for how your sales force should behave when negotiating with buyers.
Software-enabled businesses leverage discount analysis to determine whether what policies are abused or over-used, additional stronger policies are needed, and the price level is too high. There are 9 key practices that ensure an optimal discount analysis, such as reviewing sales, comparing list price and sales price, calculating the percentage of price list achieved for each sale, plotting each sale on a scatter chart, and identifying the best fit.
Learn more about Discount Analysis and Price Policies in the Software Profit Streams book!
