The discount ceiling is 15%. Almost every deal closes at 15%.

Discount authority is designed as a limit. In most sales organisations it quietly becomes a target, and the mechanism that produces that outcome is entirely predictable.

By Steve 5 min read
Abstract bridge artwork for The discount ceiling is 15%. Almost every deal closes at 15%.

Pull last year’s closed-won deals and plot the discount granted on each one. Not the average: the distribution. In a large number of businesses the shape is the same: a modest cluster at zero, very little in the middle, and a dense spike sitting exactly at whatever number the sales team is allowed to approve without asking anyone. Fifteen per cent, ten per cent, one free month, whatever the figure happens to be. That spike is the finding. A limit that is hit almost every time it is available is…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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