dag: Who needs to approve this sales discount?
version: 1.0.0
image: https://images.unsplash.com/photo-1554224155-6726b3ff858f?w=1200&q=80
description: Quickly route a discount request to the correct approval authority — from rep self-approval to CFO or CEO sign-off — based on discount depth, deal size, strategic account status, and timing. Prevents unauthorized discounting, protects margin, and keeps deals moving without unnecessary delays.
tags: sales, pricing, discounting, approval, revenue
entry: Q1

Q1: What percentage discount is being requested off standard list price?
  hint: Discount percentage is the primary lever that drives approval authority. Every additional point of discount compounds margin impact, especially on multi-year deals. Be precise — "roughly 15%" should be confirmed as the actual number before routing. If the discount is bundled with other concessions such as extended payment terms, additional seats, or free services, escalate as if the total concession value were the discount figure to ensure full visibility.
  A: 10% or less -> Q2
  B: 11%–20% -> Q3
  C: 21%–30% -> Q4
  D: More than 30% -> [CFO_CEO]

Q2: Is the deal size (TCV) above your standard approval threshold for rep self-approval (typically $25K TCV)?
  hint: Even modest discounts on large deals represent significant absolute dollar impact. Check your company's current rep approval limit — it is usually defined in total contract value, not ACV. If the deal is a renewal or expansion, apply the same threshold rules as new business unless your discount policy explicitly states otherwise. When in doubt, treat the deal as above threshold and route for manager review to avoid compliance issues.
  yes -> Q3
  no  -> [REP_APPROVE]

Q3: Is this account on the named strategic accounts list or flagged as a key account by sales leadership?
  hint: Strategic accounts carry pricing precedent risk — discounts granted today become the baseline for every future renewal and expansion. Even if the immediate margin impact is acceptable, a steep discount on a strategic account can permanently compress lifetime value across the relationship. If unsure whether an account is strategic, check your CRM's account tier field or ask your manager before proceeding. Protecting pricing integrity on strategic accounts is a long-term revenue responsibility.
  yes -> Q4
  no  -> [MANAGER]

Q4: Is this discount being requested primarily to close the deal before end of quarter?
  hint: End-of-quarter timing is the most common driver of margin erosion in B2B sales. While closing deals before quarter-end is important for quota attainment, patterns of routine EoQ discounting erode pricing power and train customers to wait for desperation pricing. Your VP Sales needs visibility into EoQ exceptions to manage quota attainment versus margin tradeoffs at the portfolio level. Document the business justification beyond timing — competitive necessity, multi-year lock-in, or reference value — when escalating.
  yes -> [VP_SALES]
  no  -> [VP_SALES]

[REP_APPROVE]: Rep Can Approve
  color: #16a34a
  description: This discount is within your self-approval authority — you can proceed without additional sign-off. Before finalizing, confirm the discount is documented correctly in your CRM and that the quote reflects the approved price. Even when self-approving, log your business justification such as competitive pressure or deal acceleration to build a clean audit trail. Avoid using the full extent of your discount authority as a default — position value first and use discounting as a close tool, not a starting point in the negotiation.
  code: SALES-DA-001

[MANAGER]: Sales Manager Approval
  color: #2563eb
  description: This request requires your Sales Manager's approval before committing any pricing to the customer. Send your manager a concise discount request that includes the deal name, TCV, requested discount percentage, competitive context, and why this discount is necessary to win. Do not present the discounted price to the customer until written approval is received and documented. Most managers can turn these around within a few hours — if you need a same-day response, flag it explicitly with the business urgency and proposed close date.
  code: SALES-DA-002

[VP_SALES]: VP Sales Approval
  color: #f59e0b
  description: The size, depth, or strategic nature of this discount requires VP of Sales sign-off to protect both margin and pricing precedent across the portfolio. Prepare a deal brief that includes competitive intelligence, the customer's stated reason for requesting the discount, and your confidence level that the discount is genuinely necessary to close the deal. Your VP may counteroffer with a smaller discount, alternative concessions such as implementation credits or additional seats, or a phased pricing structure — come to the conversation ready to negotiate alternatives. Turnaround is typically same-day if flagged as time-sensitive with a clear close date.
  code: SALES-DA-003

[CFO_CEO]: CFO / CEO Sign-Off Required
  color: #dc2626
  description: A discount of this magnitude requires executive approval at the CFO or CEO level before any pricing is shared with the customer. This threshold exists because deep discounts above 30% set pricing precedent, impact revenue recognition, and may signal a structural misalignment between your price and perceived value. Work with your VP Sales to prepare a full business case including strategic rationale, lifetime value projection, competitive necessity, and proposed guardrails such as multi-year lock-in or reference customer commitment. Schedule the approval conversation directly — do not rely on email alone for decisions at this level.
  code: SALES-DA-004