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Why Deals Die in the Negotiation Stage (And How an Approval Process Stops It)

by Megan on

There's a version of this that has happened at almost every company I've worked at or talked to.

A rep is close to the finish line on a big deal. The prospect asks for a discount. The rep, because they want to close and they have the autonomy to do it, gives a 20% discount on a $120K deal. That's $24K off the table. Nobody approved it. It just... happened.

Multiply that by ten deals a quarter and you've quietly eroded a quarter million dollars in revenue without a single alarm going off.

The deal approval SOP is not about distrust. It's not about micromanaging your sales team. It's about the fact that individual humans, under pressure, make discount decisions that make sense in the moment and don't make sense at the portfolio level.

The process itself is lightweight. Anything over a certain deal size or discount threshold goes through a quick approval — RevOps validates the data, the CRO makes a call, and the answer comes back within 24 hours. That's it. No committees. No three-week legal review. A 24-hour SLA so deals don't stall in the gate.

The thing I've found is that once you put this in place, reps actually like it. It gives them cover. Instead of a prospect grinding them on price and them having to say yes or no on the spot, they can say "let me get you an answer tomorrow." That's a power move, not a weakness.

Build the gate. Make it fast. Watch your margins hold.

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