The document outlines a negotiation strategy to maximize license sales while minimizing discounts. It suggests an initial offer of 1 million rupiah per license with a 5% discount for 40 or more licenses, followed by flexible volume-based offers with increasing discounts for larger orders. Additionally, it recommends providing flexible payment terms, bundled services, and loyalty incentives to enhance value and secure larger purchases.
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The document outlines a negotiation strategy to maximize license sales while minimizing discounts. It suggests an initial offer of 1 million rupiah per license with a 5% discount for 40 or more licenses, followed by flexible volume-based offers with increasing discounts for larger orders. Additionally, it recommends providing flexible payment terms, bundled services, and loyalty incentives to enhance value and secure larger purchases.
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To handle this scenario effectively, your goal is to maximize the number of licenses sold while minimizing the
discount provided. Here’s a potential negotiation strategy with multiple offers and alternatives:
Step 1: Initial Offer
Since the Finance Manager might be looking for a discount, offer the standard terms first: - Price: 1 million rupiah per license - Discount: 5% for 40 licenses or more - Total for 40 licenses: 40 million - 5% = 38 million rupiah If the Finance Manager is hesitant or indicates that the price is too high, you can introduce more flexible options to secure the deal.
Step 2: Flexible Offers Based on Volume
Offer higher-volume tiers to incentivize them to order more licenses: 1. 40-49 licenses: • Discount: 5% (standard) • Price: 950,000 rupiah/license • Example: 45 licenses = 45 * 950,000 = 42.75 million rupiah 2. 50-69 licenses: • Discount: 7% (better than the standard 5%) • Price: 930,000 rupiah/license • Example: 55 licenses = 55 * 930,000 = 51.15 million rupiah 3. 70-99 licenses: • Discount: 10% • Price: 900,000 rupiah/license • Example: 80 licenses = 80 * 900,000 = 72 million rupiah 4. 100+ licenses: • Discount: 12% (for securing a large order) • Price: 880,000 rupiah/license • Example: 100 licenses = 100 * 880,000 = 88 million rupiah
Step 3: Negotiation Flexibility
If the Finance Manager is looking for further flexibility, consider these alternatives: - Flexible payment terms: Offer a payment plan over a few months or even a year if cash flow is a concern for the Finance Manager. - Bundled services: Offer some complementary services (e.g., training or installation support) if the company orders over 60 licenses. This adds value without a significant financial hit. - Loyalty incentives: Offer future discounts or free upgrades for a long-term relationship, especially if they are willing to purchase a larger quantity now. By structuring the offers around volume and ensuring they receive greater value with larger orders, you can maximize the license sales while keeping discounts manageable.
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