If you work with international resellers or partners, do you let them set their own local pricing and discounts, or do you enforce a consistent price globally?

Based on our saas pricing book, Price to Scale, the answer is to strike a balance between global consistency and local market optimization. Here’s how to approach it:

• Local Market Nuances: Our book explains that each market has its own price elasticity—the very concept of a “price-optimized local maxima” allows you to account for different regional behaviors. Allowing resellers some flexibility to adjust prices locally can help them better attract and retain customers in their specific markets.

• Structured Discount Guidelines: While local autonomy is important, a centrally managed pricing strategy is essential. Price to Scale recommends establishing a discounting matrix (as seen in our discussion on discount ranges and approval hierarchies) that sets clear parameters and boundaries. This ensures that while international partners might tweak pricing to suit their markets, they remain within predefined ranges (for example, discount ranges for different customer segments).

• Central Oversight: It’s critical to maintain centralized oversight—either through a dedicated Pricing and Monetization team or a pricing calculator tool—to ensure that any local adjustments align with overall strategic objectives. This balance helps maintain brand integrity and prevents extreme variances that could weaken global pricing power.

In summary, our pricing strategy book advocates for giving your international resellers some latitude to adapt prices locally, provided they operate within a centrally defined framework. This approach harnesses the benefits of local market expertise while keeping your global pricing strategy aligned.