Most companies discover thin deals when the month closes. By then the goods have shipped, the invoice is out and nothing can be done. The fix is to check margin at the only moment it can still be changed: before the quote goes to the customer.
Two limits, not one
- A discount limit. How far a rep can move off the price list without asking. It can differ by role: a senior rep may give more than a new one.
- A margin floor. The lowest margin you accept on a quote. It catches deals where the discount looks small but costs have risen.
A quote inside both limits goes straight out. A quote outside either one waits for approval.
Who approves
Name the approver, or a group of approvers, so a quote never waits for “someone”. Sales heads usually approve discounts. Finance or the owner may approve margin exceptions. A group avoids a single person holding up deals while away.
What the approver should see
- The quote and the customer.
- The discount asked for and the rep’s limit.
- The margin against your floor.
- The customer’s history, if possible: what they usually buy and at what price.
What to keep
The decision is part of the record: who approved, when and on which version. When a customer later asks why they got a price, or an auditor asks why a deal was below margin, the answer is on the quote.
Signs you need this
- Discounts are agreed on the phone and nobody writes them down.
- Margin is checked in a monthly report, after delivery.
- Reps quote the same customer at different prices.
- Nobody can say who agreed a large discount last quarter.
How AIMS handles it
In AIMS V2 and AIMS IQ, quotes and approvals send any quote below your margin floor, or with a discount beyond the rep’s limit, to a named approver or approver group. Sales heads see what is waiting and what was approved, and the decision stays on the record. The approved quote then converts to an order without retyping. The step sits in the middle of the lead to cash journey.