Build margin-based approval thresholds
Design CPQ approval thresholds that combine discount level, margin impact, and evidence requirements.
Design approval routing for a company where software margins vary by product family and services margin is much lower. A flat 20% discount threshold floods Finance and still misses risky services deals. Risk-based approval routing: gates first, then weighted criteria The common trap is using discount percentage as the only signal. That is easy to build but expensive to operate because approvers review low-risk deals while high-risk margin erosion hides below the threshold. Set gates Define non-negotiable review triggers: below margin floor, nonstandard legal terms, unsupported product scope, and missing competitive evidence for deep discounts. Gates are not weighted. If…
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