A pricing exception should be an explicit trade—not an automatic concession. Define what the customer receives, what the business receives and who can approve the exchange.
Start with the exception, not the percentage
A concession is any departure from the normal commercial offer. It may be a lower price, a rush commitment, extended payment terms, free delivery, added scope or a custom service level. Record the full request before deciding whether to accept it.
- Customer request: what is being asked for?
- Business impact: what changes in margin, cash, capacity or risk?
- Decision deadline: when does the customer need an answer?
Use a simple Give/Get Card
Before approving a concession, name what the business receives in return. The exchange should fit the customer relationship and the economics of the work—not serve as a script for pressuring the customer.
- Customer gives: volume commitment, faster payment, longer term, reduced scope, scheduling flexibility or a clearer forecast
- Business gives: price reduction, additional service, expedited timing, extended terms or another defined exception
- Owner: the person authorized to approve the exchange
- Expiration: the date or condition that ends the exception
Set authority before the request arrives
Sales and service teams should know which concessions they may approve, which need a manager and which require the owner. Practical guardrails may use discount bands, minimum margin, payment terms, schedule impact or total contract value.
- State the normal commercial position
- Define approval limits by role
- Require a written reason for larger exceptions
- Escalate combinations of concessions, not only the headline discount
Protect the next order
Temporary exceptions often become the customer’s new reference point. Put the expiration or review date in writing, and make sure the CRM, quote and order record describe the same commercial terms. A one-time decision should not quietly reset future pricing.
Review the pattern monthly
Look at the last ten concessions, not only the largest one. Repeated requests can reveal a price-positioning issue, an unclear offer, a capacity problem or a customer segment that needs different terms.
- Which concession was requested most often?
- What did the business receive in return?
- Which salesperson, service line or customer segment generated the pattern?
- Did the exception improve volume, cash, retention or another intended result?
Use the diagnostic now
Pull the last ten discounts, rush requests, extended terms or free additions. For each one, answer two questions: what did the customer receive, and what did the business receive? Blank answers identify the first pricing rule to repair.