Hey folks. I’m curious if anyone has a target discount distribution in place. I’m considering setting ours as follows. The main point I want to get across to our leadership team is that most deals should close between 0% and 20% discount which is considered a 'healthy discount" range. Thanks!
- Above list: 5% of deals
- 0% - 10% discounts: 35% of deals
- 11% - 20% discounts: 30% of deals
- 21% - 30% discounts: 10% of deals
- 31% - 40% discounts: 10% of deals
- 41%+: 10% of deals
3 Likes
Idk how this compares broadly (would be curious what others think!) but this feels solid to me.
fwiw, when I was in sales, I was typically allowed to offer 10% discounts without approval, up to 20% from my manager, up to 30% from our director, and anything above that had to go through Sales Ops.
Thanks, @Rob_Litterst ! Yeah I’m working on a similar approval matrix.
1 Like
Hey @Steven_Meyer
I would consider what Ulrik shared in his book about the sales mandate for each component of your packaging. For instance, allow sales to discount the main value metric where probably competitors are also discounting, but do not discount or to a lesser extent services, or cost drivers for your company.
An example:
Discount matrix for usage based or PAYG metric, like API calls
No discount for support, add-ons, etc.
2 Likes