Pricing management is about managing what you want to charge for the product of the service versus what actually ends up in the bank account. So, in a different worlds pricing management is actually discount management. Now, any businessman is entitled to make a profit or to maximize profit as long as he is doing it through legal means, and not using any wild practices. And it is not a necessity for a businessman to give discounts to his customers. Just because the customer wants a discount. The discounts when given must be justified and only then only the discount is justified should the discount be given to the customer.

The most important aspect about discounts is that discount should never be given for free discount should always come at a cost. Now when we give a discount to a customer, we should always reduce proportionate amount of features in the product. Or the service. Now, we discussed RTL case, there, we saw when the customer was not ready to pay the price and was quoting a much lesser price, we reduced the features and the customer of any actually wanted the full product or all the features, he paid off what we were wanting him to pay or maybe more than what we were wanting him to pay initially. So, this is done by every software vendor or any product vendor. Like when you buy we saw the example of when we buy a software of a word processor.

If we do not pay the full price we do not get all the features, we get less features we get all the features only when we pay the full price for the software. Similarly, we discussed that when we create our products we create all the features what is possible for us and we keep adding features, but every feature is tagged. So when the cost based on how much the customer is reading To pay, we enable the features proportionately.