How to effectively expire discounts at renewal
Hey folks,
Our B2B sales led SaaS business is currently exploring some changes to how we communicate pricing to customers in our Order Form. One of our goals is to get better at expiring / removing discounts at renewal in order or improve our expansion ARR and therefore improve our NDR.
Today, we don't show any discounts on the Order Form. We're aligned internally that we want to start showing discounts so our customers clearly see that they are getting a discount and our reps at renewal have a number to point to when they discuss reducing or removing that discount. One item I'm looking into is how to clearly communicate to customers that the discount will expire after the initial term. I looked at a handful of Order Forms for vendors we buy from (Slack, Zoom, Salesforce, HubSpot, etc.) and it was rare to see any mention in these regarding the treatment of discounts.
Does anyone have experience explicitly writing into the contract how discounts will be treated in future terms? One of our concerns is being explicit with this will prolong negotiations.
Thanks for any advice!
Best,
Steve
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Steven Meyer
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How to effectively expire discounts at renewal