PLAN PRICING ACTIONS - FIX DISCOUNTING Diagnosis 1. Prepare a price dispersion graph, plot the Average Contract Value to the pricing metric and look for groups overpriced or underpriced 2. Dig into the these groups and understand why the groups are priced as they are 3. Document all the reasons given for providing discounts Treatment 1. Develop discounting guidance and rules, including both maximum discounts and target discounts 2. Document reasons for applying discounts (implement in Ibbaka Valio, your CRM or your CPQ) 3. Support sales with tools and training to help them use What is the shape of the discount curve? Why? value rather than discounts as a way to close deals PeakSpan Master Class I Ibbaka © 2023 18
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