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- Discount Matrix Pricing Case Study
Discount Matrix Pricing Case Study
iTS sells PaperCut software to many kinds of partner: resellers, OEM partners and value-added resellers, across Western, Central and Eastern Europe and in US dollars. Each kind of partner has its own terms.
The Business Problem
Software pricing was held as a separate price list for each partner type and region. Every PaperCut price change meant updating several lists, and a quote could easily pull from the wrong one. iTS's real commercial terms were already set out in a discount matrix: a percentage off the recommended retail price (RRP) for each partner. But the portal couldn't use it.
The Solution
In 2024, wildesoft.net rebuilt software pricing around the discount matrix. Every quote now starts from the single RRP price list, and the partner's discount percentage, stored against their organisation in webCRM, is applied on top. Overrides cover the exceptions, and some items, such as payment-gateway connectors, are excluded from discounting.
The new model was rolled out across MF perpetual, MF subscription and Hive, and for Western Europe, Central and Eastern Europe and US dollar pricing, at the same time as the 2024 price book. Once it was proven, the old separate price lists were removed and the new pricing was released to external users.
A focused round of fixes followed, checking every result against iTS's pricing spreadsheet. It covered price brackets, competitor-migration discounts, installation costs and the removal of obsolete lines.
The Result
iTS now maintains one software price list instead of many. Each partner's terms are a single setting, and a price change applies everywhere at once. The same model was later extended to hardware.
Get in touch if every price change means updating a dozen lists.