Discount Policy Framework

DISCOUNT PHILOSOPHY

Discount Policy Foundation

DISCOUNT PHILOSOPHY

CORE PRINCIPLE:
Every discount must be earned through
value exchange. Never discount without
getting something in return.

DISCOUNT PURPOSES:
☐ Volume: Reward larger commitments
☐ Term: Incentivize longer contracts
☐ Timing: Accelerate deal closure
☐ Strategic: Win key accounts
☐ Competitive: Match/beat competition

NEVER DISCOUNT FOR:
☐ "Just because they asked"
☐ End of quarter desperation
☐ Unqualified prospects
☐ Without approval process

DISCOUNT IMPACT:
10% discount = 30% more revenue needed
to achieve same profit (at 33% margin)
20% discount = 60% more revenue needed

Value Exchange Matrix

Discount Given	Value Received	Required Approval
5-10%	Annual prepay	Rep
10-15%	2-year commitment	Manager
15-20%	3-year + case study	Director
20%+	Strategic value	VP + Deal desk

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DISCOUNT TRACKING

Discount Analysis Dashboard

DISCOUNT METRICS

MONTHLY TRACKING:
Total discounts given: $_____
Average discount %: ____%
Deals with discount: ____%
Discount by reason: _______________

BY SEGMENT:
SMB avg discount: ____%
Mid-market avg discount: ____%
Enterprise avg discount: ____%

BY REP:
Top discounter: _____ (____%)
Lowest discounter: _____ (____%)
Team average: ____%

TREND:
This month: ____%
Last month: ____%
Trend: ↑/↓ ____%

ACTION ITEMS:
If trending up: _______________
Training needed: _______________

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