According to the type of business model selected, numerous decisions must be
made
with regard to the
price and discount policies in Europe. Software
in
Europe helps its customers make the best
decisions by delivering a set
of documented recommendations about the following points :
It may appear sensible to slightly modify the software
retail price ("MSRP") on the European markets, or conversely to align
them with the original prices in the home country. We suggest the right course
of action, depending on :
• The sales model selected
• The competitive landscape locally
• The risks of "grey market" (parallel importation)
• The software piracy risks in the considered country
• The need to fund certain localization or business development
investments.
|
"End user" discount policies |
Discounts are often proposed to end users in the frame of volume purchases
or Volume Licensing Programs (VLP). We advise you on the proposed discount rates
and applicable discount brackets, considering that the quantities required for
deeper discounts are mostly unattainable in smaller European countries.
|
"Partner" discount policies |
When the selected sales model is totally
or partially indirect, we help you determine in each country which is the best
discount
policy for :
• Master distributors
• VARS and reseller partners
• OEMs
• Strategic partners
• Manufacturers and integrators, etc.
|
Rebates and marketing funds policies (MDF) |
Any sales model involving master distributors
generally entails the introduction of :
• A rebate, i.e. a variable percentage of additional margin paid quarterly/anually
by the software publisher to the distributor if mutually agreed sales goals
are met.
• An MDF (Market Development Fund), percentage accrued
by the software publisher to the distributor on the basis of its purchases during
the previous quarter.
We help you determine the appropriate percentages for these two elements,
according to the positionning of your software and to the respective European
country
.
When you have made your decision and adjusted each of these points, we
localize your
price list and include in it these recommendations.