7
Building an intelligent discount and incentive
system as final stage to unlock profit potential
WATERFALL – FROM LIST PRICE TO REALIZED PRICE
GUIDING PRINCIPLES FOR GO-TO-MARKET
RULE-BASED
DRIVER-ORIENTED
Elaborating on discount and incentive structure for sales force and
dealers supported by an intelligent system of rules and guidelines
Taking into account different factors for setting up discount and
dealer structure, such as order volume, geographic location, and
customer importance
List price
Standard
dealer
discount
Special
dealer
discount
End
customer
discount
Volume
discount
Promotional
discount
Target
price
Payment
terms
Bonus
payment
Realized
price
ON INVOICE DISCOUNTS
OFF INVOICE DISCOUNTS
Source: goetzpartners