Three Steps to Creating Value from B2B Discounts
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Three Steps to Creating Value from B2B Discounts

Just Schürmann, Simon Völler, Amadeus Petzke and David Kamp
Boston Consulting Group, 2015
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Editorial Rating

8

Qualities

  • Innovative
  • Applicable

Recommendation

To offer business-to-business (B2B) discounts that keep your customers happy and create value for your business, follow a “value-based discounting” strategy. Just Schürmann, Simon Völler, Amadeus Petzke and David Langkamp of The Boston Consulting Group explain why discounting policies that fail to consider a customer’s value may be harming your business. They offer practical examples and guidelines to help your company make the most of its B2B offerings. getAbstract recommends this article to business owners, sales managers and those working in marketing.

Summary

For most business-to-business (B2B) companies, discounts are one of their “largest marketing investment[s]” – sometimes representing as much as “30% or more of list-price sales.” Chances are, your business either offers the same discount to all of its customers or you vary your discounts according to “common characteristics.” B2B discounts are meant to create value, but if your company doesn’t design and execute its discount strategy well, offering rebates could do more harm than good. Companies that shift to a “value-based discounting” strategy can increase their profits substantially, with less stress...

About the Authors

Just Schürmann, Simon Völler, Amadeus Petzke and David Langkamp are business experts with The Boston Consulting Group.

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