Pricing Exception Analysis & Remediation Report
Date: 2023-10-26
Deal ID: QDE45-23
Customer: InnovateCorp

1. Exception Summary



Parameter
Detail
Status




Exception Type
Discount Threshold Exceeded
Flagged


Product
FusionFlow AI - Enterprise License
-


Proposed Discount
20%
Non-Compliant


Policy Violation
5% above the 15% maximum discount allowed under Pricing Policy ID-78B.
Violation Confirmed


Financial Impact
Estimated revenue reduction of $125,000 over contract term vs. standard discount.
High




2. AI Insights

Policy Conflict: The proposed 20% discount is a direct violation of Corporate Pricing Policy ID-78B, which caps standard discounts for new enterprise clients at 15% without VP-level approval.
Precedent Risk: Analysis of pricing decision history shows that granting exceptions above 18% for this product category has historically led to similar requests from 65% of other clients in the same vertical, creating down-funnel margin erosion.
Market Context: A recent market alert (MA-2023-10-22) confirms that competitor Apex Solutions has launched a promotional campaign. However, our internal data suggests their product has a 12% lower compliance score and lacks key features present in FusionFlow AI. This context weakens the justification for a pure price match.


3. Risk Prioritization

Overall Priority: HIGH
Financial Risk Score: 8.5/10 (Significant impact on deal margin and potential for setting a negative pricing precedent).
Compliance Risk Score: 9.0/10 (Direct breach of established internal pricing controls).
Urgency: High - The deal is in an active negotiation phase. A decision is required within 48 hours to maintain deal velocity.


4. Recommended Actions
Primary Recommendation:

Action: Deny the 20% discount request. Counter-offer with a revised proposal.
Details: Propose a 15% discount (policy-compliant maximum) and bundle a "Premium Onboarding & Support" package (value of $30,000) at no additional cost.
Rationale: This approach meets the customer's need for added value without violating pricing policy or eroding the product's perceived value. Historical data from similar deals shows a 78% acceptance rate for value-added counter-offers.

Alternative Recommendation:

Action: Escalate for Strategic Approval.
Details: If the primary recommendation is rejected by the customer, prepare a formal exception request for the Regional VP of Sales. The request must include a detailed analysis of Long-Term Value (LTV) and a commitment from InnovateCorp for a joint case study upon successful implementation.


5. Automated Routing

Notification Sent To: Pricing Desk Review Team (primary review), Sarah Jenkins (Sales Rep), John Carter (Regional Sales Director).
Action Required By: Pricing Desk to approve or reject the Primary Recommendation within 24 hours.
Status: Pending Review.