Business Driver
Discount Management
🟠 REVIEW
Contributes to Pricing Optimisation's +$650K
Estimated Opportunity
Why It Matters
A pattern of inconsistent discount decisions is a governance problem, not a pricing problem — the same deal treated differently depending on who negotiated it.
Current Position
- 8 of 40 illustrative transactions breach the discount approval authority table.
- Three clients received near-identical deals with very different discount treatment.
- Average discount has risen from 7.0% to 11.8% since May, without matching governance.
How To Improve This
1
Define and document discount approval authority levels.
2
Require a recorded reason for any discount above the agreed threshold.
3
Review discount consistency across comparable deals each period.
Expected Impact
Consistent governance reduces unexplained margin variance and gives leadership confidence that pricing decisions are deliberate, not reactive.