Turning Discount Management into a Strategic Capability

Software companies invest heavily in getting pricing right, then risk leaking considerable value through transactional discounting.

Growing businesses frequently emphasize winning business over maintaining price levels, but casual discounting can make a huge impact to the bottom line. On a $100M business, reducing a discount by 5% can generate an additional $6.7M of EBITDA.

Our Insight Document explains why so much value leaks in negotiation, then shares DICE, Monevate's Deal Incentive Commercial Engine: a system that brings together clear rules for what a strong deal looks like, incentives to pursue it, and the evidence to hold price in the room. The result is more of the value you've already priced in, on the same deals, at the same list prices.

Inside the document, you'll learn:

• Why two similar deals close at very different prices, and how to separate the discounts that make commercial sense from the ones driven by internal behavior
• How to set a credible range for each type of deal, and calibrate it to where the business is heading rather than where it has been
• How to reward reps for landing at the stronger end of that range without asking them to lose deals worth winning

If you're responsible for pricing or sales and want to hold on to the value you've already priced in, without stripping the flexibility your reps need to win, this is worth reading.