Features > Discount Management
Pricing

Discount Management

Stop "special prices" in email threads. Set discount limits, enforce margin floors, and route exceptions for approval before the quote goes out.

Discount control · session

Q-20491 · industrial package

Illustrative · not defaults
List price€100,000

Rep authorisation

Up to 8%

Margin after discount

22.7%

Margin floor

24%

Net

€88,000

APPROVAL REQUIRED

Route to

Regional Sales Manager

discount → authority check → margin check → approval

What this controls

Before send

Discount checked before the quote leaves sales

Margin floor

Below-floor deals route to the right approver

On record

Approved discounts visible on the quote trail

The challenge

Every rep has a special price. Nobody knows which discounts were actually approved.

The list price is correct. Then the rep applies ten percent to match a catalog house, another five to close the quarter, and sends the PDF before anyone checks margin. Finance discovers the deal was sold below floor after it is already in the customer's inbox.

Managers approve discounts in email, chat, and hallway conversations. There is no record on the quote. When the same customer reorders, a new rep offers a deeper cut because the last discount was never recorded in the system.

Dynamic pricing updates totals as options change. Rule-based pricing applies IF/THEN surcharges. Margin calculation shows what you would earn. Discount management is different: it controls who can reduce price, by how much, and what happens when they go below policy.

Inquiry to config to price to approval to order should carry a policy-backed discount, not a rep's best guess minutes before send.

How it works

How Mercura turns discount policy into enforced workflows

Sales ops define discount limits by role, segment, or product family in Mercura: maximum percentage, margin floor, and approval route when a rep exceeds authority. When a rep or dealer adjusts price on a quote, the system checks policy, blocks or routes the exception, and records the approver on the document. Pricing rules and dynamic roll-up still set the starting total. This page is how commercial exceptions get controlled before they become margin leaks. Discount policy needs an owner when floors or authority levels change.

Price waterfall

How pricing layers combine on a deal

Illustrative stack · each page highlights its own contribution

LIST€100,000
Customer-specific−€7,000
Contract rate(within account terms)
Volume−€4,000
Rule surcharge+€2,000
Discount−€3,000
Currency / market+€1,000
NET€89,000
Cost → Margin€62,000 → 30.3%

Authority bands

Who can approve how much

Illustrative thresholds · not Mercura defaults

0–8%Rep can approve
8–15%Manager approval
>15%VP approval

Hard floor

Margin < 24% → mandatory escalation

Pattern visibility

Discount behaviour across the team

Management can see discount behaviour, not just individual quotes.

AnnaAverage 4.8%
MartinAverage 7.2%
Dealer WestAverage 9.1%

Illustrative · not live analytics

Compare

Account terms vs discretionary discount

Customer-specific

Agreed price exists before the quote is negotiated

Account price · €10,980

Discount management

Rep requests a discretionary reduction during the deal

Account €10,980 → optional −3%

Discount vs margin

Input decision → profitability outcome

Discount

Input decision

How much price reduction is requested?

Margin

Outcome

What profitability remains after pricing decisions?

−5%→Net €95,000→Cost €68k→28.4%

What's included

What discount management covers

Authorise

  • Role-based discount limits and authority levels
  • Segment and product-family specific limits

Escalate

  • Automated routing when discounts exceed authority

Protect

  • Margin floor checks before quote approval

Analyse

  • Approver history recorded on the quote
  • Same discount rules for inside sales, dealers, and portals
  • Works alongside list price, rules, and volume tiers
  • Policy updates published when discount bands change

The difference

Governing discounts before and after CPQ

Ad hoc exceptions

  1. 01 Reps discount in the PDF editor or a side spreadsheet
  2. 02 Managers approve in email with no link to the quote
  3. 03 Dealers undercut each other with unrecorded cuts
  4. 04 Finance finds sub-floor deals after signature
  5. 05 Repeat customers expect last year's unlogged discount

With Mercura

  1. 01 Discount attempts checked against policy before send
  2. 02 Below-floor deals route to the named approver
  3. 03 Approved exceptions stored on the quote record
  4. 04 Dealers and reps share the same discount authority
  5. 05 Margin review sees the same numbers sales quoted

Real-world example

Example workflow: bearings distributor discount governance

A power transmission distributor competes daily with catalog houses on bearing assemblies. Reps used to match competitor PDFs with discretionary discounts and ask forgiveness later. After setting role limits and margin floors in Mercura, a ten percent cut within authority applies instantly, a deeper discount routes to the regional manager, and the approved amount stays on the quote when the customer reorders next quarter.

Business impact

Why discount management is governance, not a pricing calculator

Discount management is how teams stop margin leaking through uncontrolled exceptions. It complements dynamic pricing, rule-based surcharges, volume tiers, and margin visibility. Mercura does not set your commercial strategy or replace finance's ownership of floors and bands. Someone must own discount policy when targets or segments change. If post-mortems start with "who approved that price", putting discount governance in CPQ aligns inquiry, configuration, price, approval, and order with the limits you already publish.

Business impact

Stronger margin discipline

Margin floor checks before quote approval.

Faster exception handling

Automated routing when discounts exceed authority.

Visibility into discount behaviour

Approver history recorded on the quote.

Compare

Customer-specific vs discount management

Customer-specific

Agreed price exists before the quote is negotiated

Discount management

Rep requests a discretionary reduction during the deal

Pricing map

How starting price, adjustments, live calculation, discount control, and margin fit together

Exception approved · within policy

See a below-floor discount route for approval on the quote

Book a demo and apply a discount until policy checks and approver routing appear before send.

Let’s build together.

We empower manufacturers to master product modeling, streamline quoting process, reduce errors, and ultimately deliver the tailored solutions that customers demand.