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  • Writer's pictureJoel White

100 Thoughts on Pricing: #15

Discounting is riskier than "risk sharing". A 5% rate or bottom line discount comes right out of your margin with no upside potential. Not only does a bonus/penalty give you the upside potential and legal language to control the downside, you can often offer the bonus without the penalty. It's perfectly ethical, you just need to get creative. A known risk with controlled downside and upside potential always beats a guaranteed downside (like discounting). Maybe risk sharing should be easier to approve than discounting

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