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The Multi-Channel Pricing Puzzle Each sales channel operates with different cost structures, customer expectations, and levels of price control: DirectSales: Often involves personalized pricing based on customer negotiations, contract terms, and volume discounts.
Coordinate among your sales, finance, and operations teams to identify pain points where CPQ can accelerate deal velocity and improve accuracy. Define Clear Rules for Pricing, Discounting, and Approvals Establish tiered pricing structures that accommodate different customer segments, deal sizes, and volume discounts.
Additionally, B2B transactions can involve the exchange of services, such as a marketing agency providing advertising services to a software company. These agreements often involve volume discounts, value-based pricing, and tailored pricing structures.
For the uninitiated, channel sales refers to the process of partnering with third parties to get your product into the end user’s hands. Part of the appeal of this approach is that it’s a very effective way to scale revenue without having to go through the expense and effort of scaling your directsalesteam.
Hence the licensee will be looking for aggressive volume discounts. Ship by option can create friction in the sales cycle and limits the distribution, but it can be the preferred strategy in some instances. For a small licensee working with a much larger company, this can be a game-changing form of advertising.
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