Discounting Policy Toolkit

1. Discount approval matrix

Any discount at any tier requires a completed Discount Request Form (below) before it is offered to the buyer, not after.

2. Escalation ladder

3. Discount request form (fields)

• Account name and deal size:
• Current stage:
• Discount % requested and $ value:
• What is being traded for it (term length, payment terms, case study rights, reference, expansion commitment):
• Business justification (competitive, budget-driven, timing):
• Is this a one-time or renewing discount:
• Requesting rep and date:

4. Rep-facing one-pager

Do:

• Get something back for every discount - term length, faster payment, a reference, a case study, an expansion commitment.
• Lead with value justification before any number is discussed.
• Use the approved trade language below rather than improvising under pressure.
• Log every discount conversation in CRM, including ones you declined.

Don't:

• Never offer a discount before the buyer has stated a specific objection to price.
• Never say 'let me see what I can do' - it signals the price is soft before you've traded anything.
• Never match a competitor's quote number without seeing it in writing.
• Never approve your own discount above your tier, even 'just this once.'

Approved trade language:

• 'I can work with you on price if we can also agree to a 2-year term.'
• 'That number works if we move to quarterly payment in advance rather than monthly.'
• 'I can bring that to my team, but I'll need something back - are you open to being a reference once you're live?'
• 'I don't have room to move on price, but I can move on start date / onboarding scope / support tier.'

5. Quarter-end guardrails

• No discount tier above 20% may be self-approved by a manager in the final 5 business days of the quarter - Director approval required regardless of deal size.
• Any discount justified primarily by 'it's quarter-end' rather than a stated buyer trade must be flagged to Deal Desk before it is offered.
• Discounts offered in the final week of quarter are reviewed the following week for pattern (see Closing Ratio & Win-Rate Calculator, discount-adjusted win rate).

6. Floor pricing rule

• Every product/tier has a published floor price below which no approval level may go without CRO + Legal sign-off, regardless of deal size or competitive pressure.
• Floor price is reviewed and republished at the start of each fiscal year - reps are not authorized to negotiate below the version in effect at deal-open date.

7. Leader rollout checklist

• Publish the approval matrix and escalation ladder somewhere every rep can see it (not buried in a wiki)
• Set the floor price per product/tier and communicate it to managers only, not reps
• Require the Discount Request Form as a CRM field, not a side conversation
• Review discount patterns monthly - flag any rep whose average discount is trending up quarter over quarter
• Re-certify managers on the matrix at the start of each fiscal year