What is discount limits ?
Discount limits define the maximum percentage reduction in price that can be offered by a sales team member without escalating for additional approval.
Discount limits are guardrails built into the CPQ or approval workflow to prevent excessive discounting. They protect gross margins while giving sales reps the flexibility to close deals competitively within defined boundaries.
Example: A SaaS company sets discount limits at 10% for account executives, 20% for sales managers, and 35% for the VP of Sales. Any request above 35% requires CEO approval, ensuring high-value deals receive appropriate scrutiny.
Related Topics
No items found.