Who can approve what discount? Govern by contribution, not by percentage.
A 10% discount authority means nothing without the margin math behind it. Set your floor from contribution, and see exactly which approval level each discount belongs to — and which deals should never happen.
Floor price = variable cost ÷ (1 − minimum contribution %). Any deal below it destroys value regardless of who approves.
Authority levels are checked against the floor: a manager's 8% authority is blocked automatically if 8% breaches the contribution floor.
Exceptions require volume commitments, payment terms or strategic rationale in writing — the matrix is governance, not negotiation.
Illustrative figures, not a client outcome.
They slow down bad deals. Deals inside authority need zero approvals — speed comes from clarity, not from looseness.
Price them as portfolio decisions with the loss quantified and approved at the top — never smuggled through sales discretion.
Version 1.0 · Reviewed 2026-10 · Methodology is fixed and version-controlled; results depend on your inputs.
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