Discounting Discipline Review
Check how discounts are approved and whether they work.
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Review discounting. Deals with list price, discount percentage, approver and outcome: [DISCOUNT_DATA]. Approval rules: [APPROVAL_RULES]. Calculate the average and spread of discounts, the share of deals above the approval limit without approval, and whether larger discounts won more often. Look for patterns by rep, quarter-end and segment, and present them as questions for managers, not accusations. Return a table, arithmetic, recommended rules for tiers and exchange of value for discounts, and a monthly report layout. Add a worked sample: 20 deals, average discount 12 percent, range 0 to 30; 6 deals above the 15 percent approval limit, of which 2 lacked approval. Deals with discounts over 20 percent won 3 of 8 (37.5 percent); deals under 10 percent won 7 of 12 (58 percent). Discounting did not clearly improve winning; present as a question. Recommend giving discounts in exchange for something such as a longer term, and a monthly report of discounts. Add a closing step: publish a one-page discount guide so reps know the limits and what to ask for in return.
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