How to Optimize Discounting Strategies in B2B SaaS | Keep It 100

SUMMARY:
Marcos Rivera dives into the often misunderstood area of discretionary discounting. Sales reps frequently use discounts to close deals, but without tight controls, this approach can lead to significant variability and lost revenue. Marcos explains how building structured discounting into your pricing model can drive strategic outcomes, allowing you to incentivize desired behaviors in your sales process.
KEY TAKEAWAYS:
• Understanding Discretionary Discounting - Discretionary discounting is when sales teams offer discounts on a deal-by-deal basis, often without proper guidelines. This approach can result in inconsistent pricing and reduce the overall value of deals.
• Goals of Discounting - Discounting can be valuable when structured to achieve three specific outcomes:
Increased volume of sales
Expansion into new products
Stronger customer commitment (e.g., longer contracts)
• Building Discounts into Your Model - Instead of random discounting, consider integrating discounts into your pricing model. This will help to align sales behaviors with strategic business goals, creating consistent value while still incentivizing customers.
• Protecting Value in Deals - Properly controlled discounting preserves value and minimizes the risk of losing revenue to unplanned discounts. Implementing a thoughtful approach can help keep deals profitable without sacrificing growth.
🔗 RESOURCES:
Marcos Rivera: / marcoslrivera
www.pricingio....
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Share Your Thoughts:
What are your experiences with discounting in B2B sales? Do you find it effective to structure discounts, or have you had success with other strategies? Drop a comment below!