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Yes, this is a big thing - there needs to be a clear model of how variable pricing and discounts are going to work in this company, with the sales team being ab
by PeterisP 4y ago
Yes, this is a big thing - there needs to be a clear model of how variable pricing and discounts are going to work in this company, with the sales team being able to apply the actual amounts of any prices and discounts, but not arbitrarily changing the model.
It doesn't work when the model is too simple or restrictive, which will simply result in the model being violated; you do need at least the ability to customize pricing for individual customers, and for specific invoices, but other than that the decisions (e.g. whether you apply invoice discounts as percentages or specific amount or both) can vary but you just need to pick any reasonable option and stick with it.
- awillen 4y agoYeah, this is tough because when the VP of Sales knows that one particular change will close the deal, they're going to push for it no matter what the cost. In reality it may be better from a big picture perspective to give a concession that is actually better for the customer and worse for the company than x as it relates to that particular deal, because the larger concession fits within the current billing system with no custom work, so the overall cost to the business is less.