Example situation: A 15% Discount for Paying a Year Upfront

Question

“Because of a cash shortage we are considering offering a 15% discount to customers who pay for an annual service upfront. So far they have paid 1,000 euros a month. Is this a good idea?”

What to question

How much would a 15% discount cost us compared with a short-term loan? Which customers would realistically accept it? What happens to the advance if we do not deliver the service in the agreed scope?

How the depth changes

Focused → broader → deepest

Essential · 4 perspectives

Four perspectives quickly separate a short-term fix from the real price: what a 15% discount actually costs compared with a bank loan, which…

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Consilium · 9 perspectives

Five additional perspectives question the assumption that cash today matters more than margin, model a downside where the best customers take the…

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Grand Consilium · 15 perspectives

Six additional perspectives test the effective annual rate implied by the discount, cheaper financing options (a short-term loan, factoring),…

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