Surprise – Your Car Dealer May Know More About Discounting Than You Do | Software Pricing

Recently, I had a car repaired at a dealer and noticed an interesting line item on my invoice – “Competitive Discount” and a corresponding amount. Some other retail shopping experiences included competitive discounts as well.

I had two reactions. Initially, I felt pretty good because I received a price break. Then, with my pricing hat on, I wondered why a company would give a customer a discount for doing nothing. I thought any company giving a discount without getting something in return would be acting against their interests (i.e. “They must be nuts”).

Maybe not.

Does your company manage their discounts strategically? The companies that do can create a competitive edge from the insights they get about their pricing model, customers and sales. They can also increase revenues without raising prices.

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Surprise – Your Car Dealer May Know More About Discounting Than You Do.