Quantitative Methods in Discount Management

Quantitative Methods in Discount Management

Immediately after that moment that prices have been set, executives are faced with the challenge of discounting. Furthermore, discount decisions can chew up more resources and cause more organizational conflict than any other pricing decision.

While some executives would like to eliminate all discounts, discounting is a form of price segmentation and, properly managed, can actually improve profitability. On the other hand, left to its own, discounting will spread like a virus affecting all transactions and wreak havoc on profits. Immediately after that moment that prices have been set, executives are faced with the challenge of discounting.

Furthermore, discount decisions can chew up more resources and cause more organizational conflict than any other pricing decision. While some executives would like to eliminate all discounts, discounting is a form of price segmentation and, properly managed, can actually improve profitability. On the other hand, left to its own, discounting will spread like a virus affecting all transactions and wreak havoc on profits.

Duration: 249 minutes

Tim Smith, Ph.D.

Managing Principal of Wiglaf Pricing

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