Pricing and Contract Term Discounting and Approval Process - 2025
This card covers the discounting and approval policies related to FY25 pricing and packaging and have been updated as a part of the Themis rollout and FY25 changes.
Reminders
High-Level
- View the Global Pricing Rate Card - Effective 15 Jan 2024
- Standard contract terms:
- For direct and referral opportunities: 36-months with at least a 1-year auto-renew;
- For co-sell and resell opportunities: 36-months with at least a 1-year auto-renew OR aligned with the contract duration of the partner’s terms.
Nonstandard contract terms are available to you with the following approval structure:
- CPQ governs non-standard approvals - all deals that include a non-standard element, must be submitted and approved there.
Guidance and thresholds
DISCOUNTING
Sales Motion/Term Length | Discount Range | Approval Level |
Direct: Multi-year | 5% | Account Executive (AE) |
>5% - 30% | Sales Manager | |
>30% | Deal Desk | |
>40% + ≥ $100K ARR | CFO | |
Direct: 1-year | 5% | Account Executive (AE) |
>5% - 20% | Sales Manager | |
>20% | Deal Desk | |
>40% + ≥ $100K ARR | CFO | |
Co-Sell Partner: 1-Year | <5% | Account Executive (AE) |
>5% | Deal Desk | |
>40% + ≥ $100K ARR | CFO | |
Implementation Services | Discounting Implementation > 5% and ≤ 49% | Front Line Sales Manager |
| Discounting Implementation >50% | Deal Desk |
Learning/Curation Services Discounting | Discounting Services > 5% and ≤ 75% | Front Line Sales Manager |
Discounting Services >76% | Deal Desk |
Non-discounting
Approval Type | When is it Triggered? | Who Approves? | Key Notes |
Non-Standard Commercial Terms | A Direct or Referral deal has one of the following non-standard terms: Net 45/60/90 payment terms, non-annual billing, or initial billing date > start date. A Co-sell deal has non-partner payment/billing terms or initial billing date > start date. | Direct Manager → Finance Team | Finance approves all payment terms. Deal Desk approves billing frequency and initial billing date > start date. |
Non-Standard Subscription Term | The subscription term is 12-23 months (for New Customer or Renewal). | Deal Desk | Renewals ≤12 months are fine and don't require this approval. |
Non-Standard Subscription Term (Shorter) | The subscription term is ≤11 months (for New Customer or Renewal). | Deal Desk → Finance | Deal Desk approves Renewals ≤11 months. Finance approves New Business deals ≤11 months. |
Standard Deal Structure (≤20K ARR)[
Deals at or below $20,000 ARR shall adhere to the standard commercial structure with minimal variations. Deals of this size will not exceed 20% off the current list price, and no modifications to the standard Terms & Conditions and standard fallbacks shall be permitted. Such deals will be auto-approved provided they remain within these guardrails.
For clarity, there will be no Deal Desk, Legal, Finance, or Professional Service approvals and there will be no IPM support without separate services packages.
- Premium Pro will only be available for accounts with ARR greater than $20,000 USD after discount.
- Deals exceeding $20,000 ARR may qualify for commercial variations, subject to standard CPQ approval rules.
Standard payment terms, method and billing frequency are:
- Net 30
- ACH or Electronic Wire
- Annual
Multi-Year Commitments/Auto-Renewals
- A minimum annual uplift of 3% applies to Year 2 and beyond in multi-year agreements, as well as to the first year of any renewal term.
- Price Locks/Pre-Negotiated Prices on Order Forms – no increase to discounting.
- If an AE/CSM wishes to include pre-negotiated or price-locked terms on an Order Form—whether stemming from prior discussions, proposals, or customer expectations—such pricing must be reviewed and approved by the Deal Desk prior to Order Form generation or customer communication. This ensures that all pricing reflects current commercial policies, margin thresholds, and approval governance.
Renewal pricing & Discounting Policy
- Renewals motion is driven by a primary goal of uplifting SKU and increasing ARR. Strategically, it is also important to secure multi-year renewal terms.
- Target ARR uplift is a minimum of 10%.
- If 10% is untenable, a minimum of 3% uplift is required.
- Flat renewals (no uplift in ARR) are only permissible for high-risk churn scenarios, with final Deal Desk approval.
- Downgrades in ARR must be justified (e.g., reduced usage, financial hardship) and require Deal Desk approval.
SKU Migration Policy
- Legacy SKUs are only accepted under auto-renewal or if required by Partner integrations.
- New SKUs are preferred for all renewals to align with current pricing and packaging.
- Uplift Structure:
- Year 1 (Y1): 10%+ ARR uplift or 3% fallback if justified.
- Year 2 (Y2): Additional 3%+ uplift (vs. Y1).
- Year 3 (Y3): Additional 3%+ uplift (vs. Y2).
Approval Requirements
- Deal Desk Approval Needed For:
- Flat renewals (no uplift).
- Renewal downgrades (ARR reduction).
- Any deviation from standard SKU migration rules.
Compliance & Enforcement
- All commercial terms must be executed through CPQ to ensure adherence to this ROE. Post-close, Deal Desk/Finance retains the right to audit deal compliance, and non-conforming agreements may be subject to processing delays or revenue recognition holds until remediated.
Please reference this Guru for what information is needed for an non-standard request submission via CPQ.