For many businesses, December means the end of their Financial Year and a time when sales teams tally up their accounts and reflect on their successes and failures. As a result, sales teams will frequently try to boost their numbers by pushing sales through in November/December and we see a much greater than average number of off-invoice discounts being given to customers who agree to place orders before the end-of-year deadline. In particular where sales teams are rewarded based on volumes and not profits, this practise can be an effective one for sales teams to hit the sales targets that trigger their bonuses, but detrimental to the business counting costs of these sales.
For many companies working with dispersed data, it can be well into January before they appreciate the true cost of these discounts, by which time it is too late to prevent it. A pricing tool like Stratinis Pricing Suite however, can give management and budget-holders near-instant visibility of both on- and off-invoice discounts and rebates so that they can be tracked and justified. Rules and alerts can be set to prevent or limit the value of off-invoice discounts and pricing control can be retained at this important time of year.