Best Practice Report

Managing Partner Discounts and Margins: Programs and Policies

January 1st, 2018
Stephanie Sissler, VP, Principal Analyst
Stephanie Sissler VP, Principal Analyst

Summary

Channel discounts define the price the partner pays for the supplier’s offer and are a key element in calculating partner profitability. When managing requests for additional discounts, suppliers should consider both upfront and back-end margin contributions to understand the impact of partner program benefits. Optimize margins through disciplined go-to-market execution that aligns partner sales and marketing behaviors to the channel strategy. In this report, we discuss two key areas that should be aligned to manage and optimize the channel discount strategy and partner selling behaviors.

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