Monetisation · Pricing · Component

The discount policy

Who may reduce price, by how much, and in exchange for what — written down, because unwritten policy is the widest policy.

The deliverable

What it is

Discounting without a policy is not an absence of policy; it is a policy set by whoever is under most pressure at the moment of signing.

The principle that keeps discounting healthy is exchange: price comes down when the customer gives something up — commitment, volume, a reference, faster payment.

One level in

What it is made of

Each element is a constituent part of the component. Follow one to see the attributes it carries.

  1. The authority

    Who can approve what level of discount.

    3 attributes: Approver · Limit · Escalation

    Learn
  2. The exchange

    What the customer gives in return for the reduction.

    3 attributes: Exchange type · Value received · Condition

    Learn
  3. The discount record

    What was actually given, to whom, and why — so the pattern can be seen.

    3 attributes: Discount given · Approved by · Date

    Learn

A discount given for nothing sets the new price and teaches the customer to ask again at renewal.