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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:

  • Managers cannot approve nonstandard contract terms
  • Regional Sales/CS Leaders can approve contract terms shorter than 3 years and longer than 1 year 
  • Deal Desk can approve contract terms of 1 year 

Discounting Thresholds

In strategic customer negotiations, customers can be offered discounted rates in place of our standard list prices – thresholds and approvals listed below:​

APPROVER​

All Region/Segment
Max Discount

Minimum
Term Length

AE/CSM​

5%​

​

​
2 years (MM)​
3 years (ENT)​

AE/CS Manager​

20%​

< 2 years (MM)​
< 3 years (ENT)​

SVP of Sales/VP CSM​

30%​

​< 1 year

Deal Desk

40%

< 1 year

CFO​

40+% (If ARR is above 50K after discount)

N/A​

What changed from the Previous policy?

  • Standardized discounting across all segments and markets.
  • Min term length will differ by segment​

Additional Policies

  • Legacy Premium Price Match: For customers that are not eligible for our new SKUs, you can price match our legacy Premium SKU to match the price of Premium Pro (in addition to layering on discretionary discounting). Refer to the tab titled "Legacy Premium Price Match" in our current rate card to determine the discount % that should be added to the legacy Premium rate card. Note: you must receive Manager approval for this discount.​
  • Industry Discounting: Non-profits / Gov eligible may be eligible for additional discounting but must follow the same approval process. ​​​
  • Discounts needing CFO approval also require commitment to logo usage, case study, or speaking engagement
  • Free periods: All discounts should be percentage based, but can be positioned as a month or two free from a positioning perspective. In other words, you could offer a customer 1-month free on a 24-month deal, but you'd have to do this by calculating the percentage discount and apply it in the order form. And remember, that discount counts against the 10% discretionary discount...
  • Note: Compliance bundle cannot be discounted by more than 40% (to ensure we aren’t undercutting our resell channel)
  • Deviation from standard payment terms, currencies, or renewal contract length less than 1-year require approval from Finance.
  • Renewal discounting will follow the same approval matrix in practice but rely on standard renewal policies found in the Guru card.
  • Standard contract duration is 3 years minimum for enterprise and 2 years minimum for MM. ​
    • All contracts of less than 2 years for MM and 3 years for Enterprise must be approved by the manager.
  • Exit clauses require Deal Desk approval prior to going to Legal for language adjustment.

Approval Process

All non-standard contract requests need to be submitted via SalesForce CPQ - pricing, payment terms, non-standard SKUs, renewals, etc.

Please reference this Guru for what information is needed for an non-standard request submission via CPQ.

For Legal requests, use Lexion or refer to the Guru card.

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