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Renewal Economics

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1 entry 4 related topics Updated April 29, 2024

How do I structure a multi-year discount that doesn't erode price floors?

multi-year-contractsdiscount-structurepricing-disciplinerenewal-economicscash-flowApr 29

Offer time-based discounts, not cumulative discounts. "3-year prepay = 15% off year 1, 10% off year 2, 5% off year 3" front-loads the incentive, preserves your list-price floor, and pulls cash forward without permanently re-anchoring the cu…

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Multi Year Contracts (1)Discount Structure (1)Pricing Discipline (1)Cash Flow (1)