Allow sales flexibility in a controlled manner with authorization, margin, and approval limits.
Pricing and discount management controls the transition from standard prices to customer- or opportunity-specific conditions.
Sales staff can offer discounts within certain limits; higher exceptions may require management or finance approval.
Price sources
General list price
Region or channel price
Customer price list
Contract price
Project or opportunity price
Campaign price
Cost plus price
Types of discounts
Line discount
Total order discount
Quantity discount
Customer class discount
Early payment discount
Free product or service
Authorized special discount
Control mechanisms
Agent discount limit
Minimum price
Minimum gross margin
Reason for discount
Manager approval
Validity period
Exception analysis
Price transparency
The offer should clearly present the list price, discount, net price, taxes, and additional charges to the customer. Hidden or unexplained price differences undermine trust.
Manage discounting authority not as a tool for closing sales, but as a controlled decision with a commercial rationale, limits, and measurable consequences.