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Discounting/Contracting Strategy
The approach to offering discounts or entering into contracts with payors to secure market access.
Implications
The approach a company takes in offering discounts or negotiating contracts with customers, often involving decisions about pricing structures, volume discounts, long-term agreements, and promotional offers to drive sales and build customer loyalty.
Example
Example: A software company develops a discounting strategy that offers tiered pricing based on the number of licenses purchased, encouraging larger clients to commit to bigger contracts for greater savings.
Related Terms
Different from a standard pricing strategy, which sets base prices, discounting and contracting strategies focus on how those prices are adjusted through negotiations and special offers.
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