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Discounting Monthly Subscriptions

I have been searching the web aimlessly to find some readable material on how businesses with subscription based services should create and define a discount model. Can anyone provide me with insight or material to study or review to create a sound model or specifications for creating or determining how to discount or what should be discounting referencing factors such as the rate of inflation. Thank you to all who view and apply.

Answers

Topic Expert
Keith Perry
Title: Director of Global Accounting
Company: Agrinos, Inc.
(Director of Global Accounting, Agrinos, Inc.) |

When I have done this, I have tried to keep it net-revenue-neutral or positive, based on:
-quote-to-cash accelleration, both closing the deal faster, and getting the cash in earlier.
-reduced turn risk.
-reduced collection costs.

Basically, you're giving up cash-per-seat for;
-more seats faster, and for longer.
-less hard and soft costs per seat.

You should end up net ahead, based on reasonable assumptions (that you can later test).

KP

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