Friend or Foe? Making Discount Management Profitable for You

Tim J. Smith, Ph.D., CPP,
Managing Principal of Wiglaf Pricing
Adjunct Professor of Marketing
at DePaul University

“Discount.”  It seems like such a dirty word, like something you would find at a Walmart near you.  Most executives would like to eliminate all discounts from pricing, but if used correctly, discounting in pricing can actually improve profitability. 

By not allowing discounting to wreak havoc and consume resources in an organization, it becomes a useful form of price segmentation.

Tim J. Smith will help you use the discount method differently, by applying quantitative approaches to the datasets of your own company. 

Attendees will need to bring a laptop with Microsoft Excel, and will look at three tools for firm-specific discounting practices, and four commonly used tools executives use to restrain them. 

Attendees will also study:

• How discounting can simultaneously lower market entrance prices, increase volumes and improve profitability,
• Quantitative methods for measuring and monitoring discounting policy,
• Quantitative and managerial tools for restraining discounts,
• Implications of Prospect Theory and the Nash Equilibrium on discounting policy.

Dr. Tim J. Smith will be leading the workshop Advanced Quantitative Methods in Discount Management at the PPS 9th Annual European & Global Conference and Workshops in Berlin, Germany in December.