Are you using price incentives as a lever to close a deal by quarter end/year end? Has it been effective?
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Are you leveraging Pricing expirations as motivation to close by a certain date? If so is it effective?
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I have found discounts don't really make anyone move quicker. Most people know at the end of the day, that price has already been proposed and even if the deadline is missed, it wont go away.
At the end of the day, you give a 50% discount to close by EOM, next month roles around with no PO. That prospects knows that they can come back and say give me that discount or we walk. 9 times out of 10 the business will take the deal.
At the end of the day, you give a 50% discount to close by EOM, next month roles around with no PO. That prospects knows that they can come back and say give me that discount or we walk. 9 times out of 10 the business will take the deal.
This.
Not worth sacrificing the revenue.
Not worth sacrificing the revenue.
Depends on the size account and your willingness to walk away (can't be bluffing).
Small deals with high-velocity cycles can be effective with this. "I know you want a decision by end of the month. Once I put the quote in to my CRM the discount will end by then, can we work towards achieving it?"
Large deals do not give a fuck. They move at their pace and buy what provides the best value. There, you just need to understand their drivers and move with them.
Small deals with high-velocity cycles can be effective with this. "I know you want a decision by end of the month. Once I put the quote in to my CRM the discount will end by then, can we work towards achieving it?"
Large deals do not give a fuck. They move at their pace and buy what provides the best value. There, you just need to understand their drivers and move with them.
Agreed, I think this is a less effective strategy overall. My days at Oracle they always tried to leverage price and it never worked because everyone knew the pricing would be available next quarter.
Yeah. Very true. If it makes business sense today, it makes business sense tomorrow. That's why you need to actually be willing to walk
Not really. I'll maybe offer a volume discount but since nobody can deliver, they can't ever take advantage of it.
It costs a certain amount of money to do what we do, therefore you have to pay for us to do it for you. That's how economics work.
It costs a certain amount of money to do what we do, therefore you have to pay for us to do it for you. That's how economics work.
I don't. I do keep in contact with the prospect to keep a trail. If they miss out and come back, as they normally do, then they will have to take what I give em. 🤷♀️
It is -- but I always ask myself "is it worth sacrificing the revenue."
Time kills deals - but I want to use the customer's timeframe to move them forward in the sales process.
Figuring out why they're evaluating
What problem they're trying to solve
What has to happen before they can make a purchase
la de dah
That all is easier to learn on because it's
1) customer focused
and
2) doesn't sacrifice revenue (I want to keep my money, not give it away to sign a deal one week faster)
If a customer tells me they need certain terms or specific pricing & we make an agreement, you bet your ass I'm going to take it away if they don't sign at the agreed upon date.
It's the give / get game.
Time kills deals - but I want to use the customer's timeframe to move them forward in the sales process.
Figuring out why they're evaluating
What problem they're trying to solve
What has to happen before they can make a purchase
la de dah
That all is easier to learn on because it's
1) customer focused
and
2) doesn't sacrifice revenue (I want to keep my money, not give it away to sign a deal one week faster)
If a customer tells me they need certain terms or specific pricing & we make an agreement, you bet your ass I'm going to take it away if they don't sign at the agreed upon date.
It's the give / get game.
The only one I have found to be effective is using EOY as an incentive. 2 main reasons it has worked:
- Holidays are a nightmare for process. Sign before people go out so you can actually use the tool during peak seasons
- Pricing model changes. My company is a medium-large startup so it is relatively common to change our pricing model somewhat frequently, specifically at the new year. I have told prospects that X price will be different / more expensive in January and that you need to commit by EOY to confirm the price. Is it a bluff? Probably. Has it worked? Yes... to smaller, less experienced buyers.
- Holidays are a nightmare for process. Sign before people go out so you can actually use the tool during peak seasons
- Pricing model changes. My company is a medium-large startup so it is relatively common to change our pricing model somewhat frequently, specifically at the new year. I have told prospects that X price will be different / more expensive in January and that you need to commit by EOY to confirm the price. Is it a bluff? Probably. Has it worked? Yes... to smaller, less experienced buyers.
Yeah this is something ive been using to great success. But, it depends on the value youve build up to this point imo
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