Local Government Pricing Approval
A governance process for requesting and obtaining approval for non-standard pricing, discounts, or commercial terms that fall outside a sales representative standard authority.
Purpose
To maintain margin discipline while giving the sales team a fast, clear path to obtain approval for exceptions when a compelling council case exists.
Scope
Applies to all pricing requests that exceed the sales representative discount authority, involve non-standard payment terms, or require executive sign-off for strategic deals.
Prerequisites
- Documented discount authority matrix by role and deal value
- Approval workflow configured in the CRM or quoting tool
- Standard margin thresholds defined by service or service line
- Access to deal profitability calculation tools
Supports Local Government Act compliance, freedom of information requirements, and public accountability standards.
Step-by-Step Procedure
Determine Whether Approval Is Required
Check the discount authority matrix to confirm whether the proposed pricing falls within your approval limits.
- 1.1Compare the proposed discount percentage or deviation against your authority level
- 1.2Check if any non-standard payment terms (extended net terms, milestone-based) require approval
- 1.3If within authority, proceed without escalation; if outside, continue to the next step
- When in doubt, escalate — it is better to seek approval than to commit to an unapproved price
Prepare the Council Case
Document the rationale for the pricing exception, including the deal context, competitive situation, and strategic value.
- 2.1Calculate the deal profitability at the proposed price versus standard price
- 2.2Explain why the discount or exception is necessary (competitive pressure, strategic account, volume commitment)
- 2.3Quantify the total deal value including potential upsell or lifetime value
- 2.4Describe what you have asked for in return (longer contract, faster payment, reference rights)
- Approvers respond to data, not emotion — build a fact-based case
Submit the Pricing Approval Request
Route the request through the appropriate approval channel with the supporting council case.
- 3.1Submit the request via the CRM or quoting tool approval workflow
- 3.2Attach the council case document and any supporting data
- 3.3Indicate the urgency and buyer timeline for the decision
- Submit early in the day to maximise same-day turnaround
Respond to Approver Questions
Address any questions or requests for additional information from the approver promptly.
- 4.1Monitor the approval queue for comments or questions
- 4.2Provide additional context or data within 2 hours of the request
- 4.3If the approver suggests an alternative approach, evaluate and respond
- Be prepared to compromise — the approver may approve a partial discount rather than the full request
Receive and Document the Decision
Record the approval or rejection decision and any conditions attached to the approval.
- 5.1Document the approved pricing, conditions, and expiry date
- 5.2If rejected, note the reason and any guidance for an alternative approach
- 5.3Update the opportunity record in the CRM with the approval reference
- If the approval comes with conditions (e.g., minimum contract length), ensure these are incorporated in the quote and contract
Apply Approved Pricing to the Quote
Update the quote or proposal with the approved pricing and any associated conditions.
- 6.1Revise the quote with the approved price and terms
- 6.2Include any conditions stipulated by the approver
- 6.3Link the approval record to the quote for audit purposes
- Double-check that the approved pricing matches what you enter in the quote exactly
Quality Checkpoints
Common Mistakes to Avoid
Expected Outcomes
Average time from request submission to decision, targeting under 24 hours for standard requests.
Percentage of closed deals that meet or exceed minimum margin thresholds, targeting above 90%.
Percentage of deals requiring pricing exceptions, tracked to identify systemic pricing issues.
Frequently Asked Questions
What if the buyer needs a price answer before the approval process can complete?
Communicate that you are working to get them the best possible price and provide a timeline for your response. Never commit to a price you have not been approved for. If truly urgent, escalate directly to the approver by phone or message.
Are there situations where pricing approval is never required?
If the pricing is at list price or the discount is within your approved authority level, no escalation is needed. Some organisations also pre-approve pricing for standard services sold through specific channels or programmes.
How do I handle a pricing approval rejection?
Understand the reason for rejection. If the margin is too low, consider reducing the discount and adding value instead (additional services, extended support). If the deal structure is the issue, propose an alternative (phased pricing, performance-based). Go back to the buyer with a revised approach.
What discount levels can a sales representative approve independently?
This varies by organisation and is defined in the discount authority matrix. Typically, junior reps can approve 0-5%, senior reps 5-10%, sales managers 10-20%, and anything above 20% requires VP or executive approval. Consult your specific authority matrix.
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