We sold semiconductor IP blocks. There might be a product that sold for $500K and they might sell 50 licenses a quarter for $25M. For our product our direct competitors sold it for around $4M
But at the end of the quarter the division that we were lumped in with would be short of their target by $2M. Then the VP of sales would go through the list of customers we were currently negotiating with and instead of selling for $4M would offer a big discount at half price in order to hit the quarterly revenue target.
This went on for 3 years and then they say you need to increase your ROI numbers. Our plan was to not give huge discounts and sell at the same price as our competitors but we got sabotaged by that VP of sales every quarter.
After we were at other companies our former customers told us that it was widespread industry knowledge that you could just wait until the last day of the quarter to get huge discounts from us.
We sold semiconductor IP blocks. There might be a product that sold for $500K and they might sell 50 licenses a quarter for $25M. For our product our direct competitors sold it for around $4M
But at the end of the quarter the division that we were lumped in with would be short of their target by $2M. Then the VP of sales would go through the list of customers we were currently negotiating with and instead of selling for $4M would offer a big discount at half price in order to hit the quarterly revenue target.
This went on for 3 years and then they say you need to increase your ROI numbers. Our plan was to not give huge discounts and sell at the same price as our competitors but we got sabotaged by that VP of sales every quarter.
After we were at other companies our former customers told us that it was widespread industry knowledge that you could just wait until the last day of the quarter to get huge discounts from us.