Prices: The Art of Discount Management

Properly establishing the criteria for the application of discounts or special conditions helps to wisely manage price reductions without compromising the company's profitability.

Friday, January 11, 2019

Price management specialist and founder, Ariel Baños, explains how through the "strainer strategy" discounts to customers can be managed intelligently.

The strainer's strategy consists of establishing in advance the criteria for the application of discounts or special conditions, and properly informing salespeople, the sales channel and customers.

The article details that if the conditions for accessing the discount are well established, these new options will not be attractive to customers where the differentials are more consistent, because they would just be resigning to part of the attributes of the proposal that are more valuable to them.

It adds that there is another important advantage, which is that if some opt for the basic option, the discount will be given in exchange for resigning something. In other words, it is not just charging less for "the same". This will go a long way towards avoiding claims from other customers who choose to continue to receive the usual option, at no discounted prices.

The article concludes that properly designing the strainer will help you make discounts more intelligently. That is to say, only under pre-established conditions, and not to carry out permanent agreements of prices "to measure" before the urgency of the moment, since this represents a very bad precedent.

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