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In the enterprise space, I have learned that if you drop your price for one customer, your other customers will quickly learn of the new "price floor."
by stevewilhelm 14y ago
In the enterprise space, I have learned that if you drop your price for one customer, your other customers will quickly learn of the new "price floor."
- daeken 14y agoWhile I don't deal with enterprise sales, I do security consulting for the enterprise, and one thing I do is never lower my prices. Instead, I'll just add additional value over top, e.g. an extra day of consulting. Yes, it has the same effect for me, but it doesn't get my clients in the habit of paying me less money.
- chiph 14y agoEveryone likes getting something "for free". For an enterprise-level customer, another day of consulting. For smaller customers, a free t-shirt or water bottle. Goes back to the whole perceived-value thing.
- vacri 14y agoThe medical equipment company I used to work for had a price for its gear that included a starting discount of 5% for any sale, to make the customer feel like they're getting a good deal.
- Spooky23 14y agoIf the Federal government is a customer, you may be sued for fraud if they aren't the customer getting the best price.
- rtkwe 14y agoNo, you bill at the level your contract states that you charge. Doesn't matter what you have anyone else pay you it's what you negotiated through the bidding/negotiation process.
- Evbn 14y agoMany Federal contracts explicitly state that they must be the lowest rate being charged to any customer.
- ryen 14y agoUsually the enterprise sales process will include a confidentiality agreement which includes the sale price, discounts, etc for that customer. Usually this is enough for most transactions.
- stevewilhelm 14y agoIn my experience, confidentiality agreements are not effective or enforceable.