In most industries, the list or basic price is only the starting point for customer pricing. Extensive systems of discounts and conditions lead to vastly different prices for different customers. However, the problem for many companies is that the discounts and conditions have increased over time. In the past, this area has often not been specifically managed.
Establishing conditions management
Establishing specific conditions management is based on three pillars:
- Creation of the required transparency: analytical tools such as the discount cloud or pricing waterfall create the database required to achieve specific control
- Development of the principles, according to which these discounts and special conditions are distributed: this involves a direct interface with customer segmentation, because for reasons of complexity, discounts are generally not given to individual customers, but to customer segments.
- The company's "discount culture" is also decisive: measures can only be effective if all sales staff are equally aware that every percentage point in regard to discounts is decisive. As well as guidelines for the system of conditions, extensive training measures are therefore also an important starting point.
Together with yourselves, we develop individual systems of discounts and conditions. All elements of any conditions are specifically reviewed in terms of their benefits. We then develop a system with strategically placed control and incentive functions. The level of each single discount element specifically reflects the customer's ability to pay. Thanks to our many years' experience of different industries, we can provide extensive benchmark knowledge. We also provide support with the implementation of the new system.