Getting Regional Discounts in Salesforce

Getting Regional Discounts in Salesforce

• Check local pricing policies: Salesforce offers region-based pricing.
• Contact a local Salesforce rep: Regional teams can offer discounts.
• Consider currency differences: Exchange rates can impact costs.
• Negotiate multi-region deals: Discounts often apply to global contracts.
• Leverage regional demand: Highlight local user adoption for better pricing.

1. Why Regional Salesforce Discounts Exist

Salesforce offers regional discounts for several reasons:

• Market Penetration Strategy: Salesforce might be trying to expand its presence in some regions. Discounts become an attractive way to lure more businesses.
• Varying Competition Levels: Different countries have different levels of competition. In markets where Salesforce faces heavy competition, they may offer deeper discounts to remain competitive.
• Regional Economics: Economic conditions differ worldwide. Salesforce adjusts its pricing strategies to reflect the local economic landscape, including discounts that align with local spending power.

2. How to Approach Regional Discounts in Salesforce

Getting a regional discount is less about asking and more about strategy. Here are a few tactics you should consider:

• Research Market Rates:
  • Understand how Salesforce is priced in your country compared to other regions.
  • There are websites and forums where users share their pricing details, which can be a goldmine.
  • Example: Websites like G2 or Reddit often have threads where users discuss the deals they’ve received.
• Utilize Regional Offices:
  • Salesforce often has local offices with local representatives. Building a relationship with them is critical. They can help you understand the pricing strategy in your region.
  • Local reps might also have more leeway regarding the discounts they can approve than their global counterparts.
• Compare to Similar Markets:
  • Compare your region to others with similar market conditions or economies. If Salesforce offers better discounts there, you have a solid case for requesting similar discounts.
  • Example: If you operate in Eastern Europe, compare your pricing with countries like Poland or the Czech Republic, which might have similar economic dynamics.

3. Key Tactics for Negotiating Regional Discounts

1. Leverage Timing

• Sales Cycles Matter: Like many software companies, Salesforce has quarterly sales targets. If you time your negotiations towards the end of the quarter, regional representatives are often more inclined to approve discounts to meet their numbers.
• End-of-Year Budgets: Closing deals at the end of the fiscal year (typically January) can also help you gain extra leverage, as Salesforce aims to hit ambitious annual targets.
• Example: “We’re willing to close this deal within the next two weeks. What flexibility can you provide in terms of pricing?” This emphasizes the urgency.

2. Use Local Competition to Your Advantage

• Identify Competitors in Your Region: If other CRM providers offer better deals, mention this during the negotiation. Salesforce doesn’t like losing potential clients to regional competitors and may offer a discount to keep you onboard.
• Examples: If you’re in Southeast Asia and HubSpot has a significant offer there, use that as a card. Their local discount structure pulls you towards them unless Salesforce adjusts accordingly.
• Check for Regional Promotions: Sometimes, local competitors run special promotions that might not be available globally. Bringing this up shows Salesforce that you’re aware of the local market.

3. Bundle Licensing Requests for Multiple Regions

• Multi-Regional Businesses Benefit: If your organization operates across multiple regions, leverage this fact. Bundling your licensing requests for numerous areas can increase the total contract size. Salesforce might be more flexible on discounts in smaller areas when they see a significant opportunity overall.
• Present Unified Needs: Make it clear that regional offices in different countries have unified requirements. This will help in negotiating discounts across the board.
• Example: “Our teams in Canada and Mexico both need licenses for the upcoming fiscal year. What can you offer us in terms of a bundled regional discount?”

4. Develop a Strong Local Relationship

• Local Reps Often Have More Flexibility: Building rapport with Salesforce’s regional representatives is essential. They understand the local market better and might have more negotiation flexibility than global teams.
• Local Events and Meetups: Attend Salesforce-hosted events in your region. Building a personal connection can make it easier to discuss discounts without seeming pushy.
  • Example: Attending Dreamforce or local Salesforce events can help you establish key relationships with local reps. This networking opportunity can later be beneficial when discussing regional pricing.

5. Utilize Global Contracts Strategically

• Existing Global Deals Can Help: If your organization has a global contract with Salesforce, push for consistency in regional pricing. Salesforce often likes to maintain uniformity, and you can use this to argue for fair pricing and discounts.
• Highlight Regional Disparities: If you notice pricing discrepancies between your regions, use your global contract to push for an adjustment.
  • Example: “We have a global agreement in place, yet the pricing in India seems significantly higher than in Brazil. Can we align these to our global contract terms?”

4. Common Mistakes to Avoid

1. Not Asking About Regional Adjustments

• Avoid Assumptions: Don’t assume your initial pricing is the only available offer. Salesforce reps typically have wiggle room in their pricing, especially on a regional basis. Always ask for regional adjustments.
• Ask Multiple Times: Negotiations take time, and asking more than once can sometimes yield surprising results.
  • Example: “Are there regional considerations or promotions we might miss?”

2. Forgetting to Do Regional Research

• Lack of Local Market Understanding: One of the biggest mistakes is not knowing the pricing dynamics in your region. If you’re unaware of the local discounts available, it’s harder to argue for one. Research before you start negotiating.
  • Resources to Use: Forums like Reddit, industry publications, and contacting other local businesses are good places to gather information.

3. Not Highlighting Local Challenges

• Make Local Issues Known: For example, highlight whether your region faces economic challenges or currency instability. Pointing out such realities may lead to special considerations in pricing.
• Examples: If your country is experiencing high inflation or currency devaluation, bring these points into the conversation: “Our local economy is under pressure due to recent economic changes. We need more flexible pricing that reflects these conditions.”

5. What Discounts to Aim For?

1. Volume-Based Discounts

• More Licenses, Lower Prices: Salesforce offers volume-based discounts if you purchase more licenses simultaneously. Try to time your regional purchases to coincide, increasing the number of permits and your leverage.
• Align Needs Across Departments: Align different departments or subsidiaries within your company to purchase licenses together.
  • Example: “Our HR and Sales teams both need licenses this quarter. Can we get a discount for bulk purchases?”

2. Duration-Based Discounts

• Long-Term Commitment Pays: If you can sign a more extended contract—like a 3-5 year deal—Salesforce is often more willing to provide discounts. You’re locking in revenue for them, which they value highly, especially in certain regions where stability is more uncertain.
• Stability as a Bargaining Tool: Salesforce loves stable clients. Use this to get better rates.
  • Example: “We are ready to commit to five years, but we need a discount that reflects the value of this commitment.”

3. Local Partner Discounts

• Partner Network: Salesforce often has partner firms in different regions that handle part of the sales and implementation. These partners might offer discounts that direct Salesforce channels cannot. Sometimes, you might get a better deal by buying through a local partner.
• Involve Local Partners Early: Including partners early can help set expectations around pricing and negotiation.
  • Example: “Our implementation partner mentioned possible regional discounts. Could we explore those in more detail?”

4. Implementation and Add-On Discounts

• Add-Ons & Implementation: Salesforce pricing also involves the cost of add-ons like extra features or premium support. When negotiating regionally, try to bundle these with discounts to lower your overall cost. Mentioning competitors or implementation partners offering better deals for those features can help.
• Highlight Competitor Prices: Bring up competitor pricing for similar add-ons.
  • Example: “We’ve received a lower quote for add-on features from Zoho CRM. How can Salesforce align their pricing to remain competitive?”

6. Negotiation Scripts for Regional Discounts

1. End of Quarter Play

• “We’re ready to close this deal this quarter but must align it with other regional budgets. A regional discount would help us finalize things now rather than pushing into next quarter.”
  • Why it Works: This script hints at urgency, a factor Salesforce wants to capitalize on.
• Timing It Right: Phrasing the timing factor is crucial here. Salesforce wants deals to close quickly, especially near the end of their sales cycle.
  • Follow-Up Line: “We are on the edge of deciding, and the regional discount can help push this decision forward immediately.”

2. Competitor-Based Play

• “We’ve been evaluating similar CRM solutions in the region. For instance, HubSpot is offering a 10% regional discount. We need Salesforce to provide us with a competitive advantage.”
  • Why it Works: It forces Salesforce to acknowledge local competitors and take action.
• Double Down on Competition: Mention specific competitors and their advantages. Be open to considering other options.
  • Example: “Freshworks offers a similar solution at a lower price, and they have a team on the ground here. We need to see Salesforce match that commitment.”

3. Long-Term Agreement Play

• “We’re considering a 3-year agreement but would need some flexibility regarding regional pricing adjustments. What can you do regarding a discount if we commit to it long-term?”
  • Why it Works: Long-term deals are stable and attractive for Salesforce, allowing room for negotiations.
• Use Certainty to Your Benefit: Salesforce values guaranteed revenue streams. Offer them certainty in exchange for regional flexibility.
  • Additional Ask: “If we commit for the long term, can we also negotiate better terms on annual add-on costs?”

7. Using Salesforce Partner Firms for Regional Leverage

Salesforce often works with regional partners that have some autonomy regarding pricing.

• Check for Partners in Your Area: Sometimes, these partners can offer better deals than Salesforce itself due to their regional knowledge and autonomy.
  • Leverage Their Networks: Partners may have insights into upcoming Salesforce promotions that aren’t yet public.
  • Example: “We heard about an upcoming promotional discount from a local partner. Could we get in on that pricing now?”
• Examples: If you’re in Latin America, ask if there are local Salesforce partner firms who can handle your deal. You might get a discount, but local partners can offer more culturally tailored implementation services.
• Ask for a Competitive Review: If you receive a discount from a partner, present it to Salesforce directly and request that they match or beat it.
  • Partner Comparisons: Sometimes, partners might also provide lower add-on service costs.
  • Example: “Our local implementation partner offered us a lower rate on premium support. Could Salesforce match or provide an additional discount?”

FAQ: Getting Regional Discounts in Salesforce

What are regional discounts in Salesforce?
Regional discounts are pricing adjustments Salesforce offers to align with local economic conditions and market demand. These discounts make the platform more accessible to businesses in specific regions where affordability or market penetration might be challenging.

How do I find out if I qualify for a regional discount?
To determine eligibility, contact your local Salesforce account manager. They can review your location, business size, and other factors to see if you qualify. Additionally, reviewing your Salesforce contract can reveal if regional pricing is mentioned.

Does Salesforce pricing vary significantly by region?
Yes, Salesforce pricing can differ depending on the country or region. For example, a Southeast Asian business may receive lower rates than one in Western Europe due to varying economic conditions and Salesforce’s local market strategy.

Can small businesses request regional discounts?
Small businesses are often eligible for regional discounts, especially in emerging markets. Salesforce might adjust pricing to accommodate smaller budgets or incentivize adoption in fewer-musers regions.

Are all Salesforce products eligible for regional discounts?
Not all products qualify. Core CRM licenses are most commonly discounted, but add-ons like Tableau, Slack, or Marketing Cloud may not have region-specific pricing adjustments. Check with your Salesforce representative for product-specific eligibility.

How do regional discounts impact multi-region businesses?
Salesforce may offer blended pricing for businesses operating in multiple countries. This means combining regional discounts with global enterprise rates to provide a unified deal across all locations. Negotiating for multi-region operations often requires highlighting the volume of licenses needed.

What role does user volume play in securing regional discounts?
User volume can significantly influence the discount you receive. Businesses onboarding many users in a region often have better leverage to negotiate lower prices. Salesforce sees this as an opportunity for higher adoption and long-term revenue.

Can regional discounts be applied during renewal negotiations?
Yes, but they are not guaranteed. It would be best if you renegotiated regional discounts at each renewal cycle. Failing to do so may result in losing the initial discount. Start renewal discussions early to ensure regional pricing adjustments are maintained.

How do currency fluctuations impact regional pricing?
Currency strength can influence Salesforce’s regional pricing. For example, businesses paying in a weakened currency may see Salesforce adjust prices to remain competitive or affordable in that market.

Can I combine regional discounts with Salesforce promotions?
This depends on the terms of the discount and promotion. Some regional discounts can be combined with seasonal offers, but it’s best to confirm with your account manager to avoid misunderstandings.

Do non-profits automatically qualify for regional discounts?
Non-profits often qualify for discounts through programs like Salesforce’s Power of Us initiative. Regional discounts can be an additional layer of savings, but eligibility and terms will vary based on the specific region and organization.

What factors does Salesforce consider when granting regional discounts?
Salesforce considers regional demand, economic conditions, user volume, and local competition. Demonstrating how these factors apply to your business strengthens your case during negotiations.

Are local Salesforce partners helpful for securing regional discounts?
Local partners can be instrumental. They have in-depth knowledge of Salesforce’s regional strategies and may help advocate for better pricing on your behalf. Partners can also bundle services to make your package more affordable.

Do I need documentation to prove eligibility for regional discounts?
Yes, Salesforce may request documentation such as proof of your regional operations, local business registration, or evidence of planned user adoption in the region. Providing accurate details ensures smooth negotiations.

What’s an example of a prosperous regional discount negotiation?
A medium-sized business in South America expanded its Salesforce implementation to 500 users. By emphasizing their regional challenges and future growth plans, they secured a 25% regional discount for the first three years, helping them scale their operations without exceeding their budget.