Discount Authorization Levels

Purpose

Formal discount levels and the authority required for each, ensuring consistent pricing while allowing flexibility when appropriate.

When to Use

Any time a discount, price reduction, or promotional adjustment is being considered.

Discount Levels

Level 1: Standard Discounts (No Approval Needed)

• Membership discounts: Automatically applied at the standard membership rate. Tech or sales rep applies in ServiceTitan.
• Active promotional pricing: During company-approved promotions (e.g., seasonal specials), use the published promotional rates.
• Senior/military discounts: If Spartan has an active published discount for these groups, apply as published.

Level 2: Situational Discounts (Manager Approval)

• 5-10% adjustment: For multi-service bundling, loyal customer accommodation, or competitive price matching.
• Requires verbal approval from a manager.
• Document the reason and approving manager in ServiceTitan.

Level 3: Significant Discounts (Josh/Owner Approval)

• Over 10% reduction: Requires Josh's direct approval.
• Used for: large project negotiations, significant customer retention situations, or strategic accounts.
• Must be documented with full justification.

Level 4: Free/No-Charge Work (Josh Only)

• Warranty work outside standard coverage, goodwill repairs, community service projects.
• Josh approves all no-charge work directly.
• Every no-charge job must still be documented in ServiceTitan.

Procedure

Determine which level the proposed discount falls under.

If approval is needed, contact the appropriate person with: customer name, job scope, standard price, proposed discount, and reason.

Get explicit approval before communicating the discount to the customer.

Apply the discount in ServiceTitan with a note explaining the reason and who approved it.

Present to the customer as a one-time accommodation: "I was able to get you [X]. This is a special accommodation for [reason]."

Important Notes

• Unapproved discounts are a policy violation.
• "The customer threatened to leave a bad review" is not a valid discount reason. Handle that through proper customer service channels.
• Track discount patterns — if a rep is constantly discounting, it may indicate a training or pricing issue.
• Flat rate pricing is fair pricing. Discounts should be the exception, not the standard.

Related SOPs

• Price Adjustments & Manager Approval — tech-side approval process
• Flat Rate Pricing System Overview — pricing philosophy
• Closing Process & Techniques — closing without discounting