Pricing Approval Workflow

Purpose: Document and submit the proposed pricing change with complete justification for review. Required Information: • Current price - The existing price point being changed • Proposed price - The new price being requested • Reason for change - Cost increase, market conditions, competitive pressure, or strategic repositioning • Affected products/services - Complete list of SKUs or service lines impacted • Revenue impact - Projected change in revenue at current volume • Margin impact - Expected effect on gross and contribution margins Supporting Documentation: • Market research or competitor analysis • Cost structure changes (if cost-driven) • Customer feedback or demand signals • Historical pricing data for context Deadline: 1 day from workflow start

Purpose: Calculate and validate the financial impact of the proposed pricing change to protect profitability. Margin Analysis Checklist: • Gross margin before - Current percentage and dollar amount • Gross margin after - Projected percentage and dollar amount • Contribution margin impact - Effect on variable cost coverage • Break-even volume - Units needed to maintain current profit levels • Overall profitability - Net effect on bottom line Threshold Review: • Compare against minimum acceptable margin thresholds • Flag any changes dropping margins below policy limits • Identify if senior leadership escalation is required Important: If margins fall below acceptable thresholds, document the business justification or recommend rejection. Deadline: 2 days from workflow start

Purpose: Evaluate how the proposed price change affects market positioning and competitive dynamics. Competitive Analysis: • Competitor pricing - Compare proposed price against top 3-5 competitors • Market position - Where does this place us (premium, mid-market, value)? • Price-to-value ratio - How does our offering compare at this price point? • Win rate impact - Expected effect on deal closures against alternatives Strategic Considerations: • Does this support or undermine our brand positioning? • Will customers perceive fair value at this price? • Are we inviting competitive response or retaliation? • Does this align with our target market segment? Recommendation: Document whether the competitive positioning supports proceeding with the price change or suggests modifications. Deadline: 2 days from workflow start

Purpose: Make the formal approval decision based on all submitted documentation and analysis. Review Checklist Before Deciding: • Pricing change request is complete with justification • Margin impact analysis shows acceptable profitability • Competitive positioning supports the change • All supporting documentation is attached Decision Options: • Approve - Proceed to implementation • Reject - Document reason and close workflow • Request modifications - Send back for revisions with specific feedback Escalation Requirement: If the discount or price reduction exceeds standard approval thresholds, escalate to senior leadership before approving. Audit Documentation: Record the approval rationale, any conditions attached, and the decision date for compliance records. Automation: Upon approval, the implementation step becomes visible. Deadline: 3 days from workflow start

Purpose: Implement the approved pricing change across all business systems and customer-facing channels. System Updates Required: • Master price list - Update the official pricing document • ERP/Billing system - Configure new prices in the financial system • Sales quoting tools - Update CPQ or quote generation systems • E-commerce/Website - Update online pricing displays • Customer-facing materials - Brochures, catalogs, rate cards Implementation Checklist: • Set the effective date for the price change • Verify all channels reflect the new pricing consistently • Test quote generation with new prices • Confirm billing system will charge correctly • Archive old pricing documentation Automation: Upon completion, the sales communication step becomes visible. Deadline: 5 days from workflow start

Purpose: Ensure the sales team is fully prepared to sell at new price points before the change takes effect. Sales Enablement Package: • Talking points - Key messages for customer conversations • Updated quote templates - Pre-configured with new pricing • Comparison sheets - Old vs. new pricing for reference • FAQ document - Common questions and approved answers Training Content: • Reason for the price change (what to tell customers) • Value justification at the new price point • Handling objections and pushback • Competitive positioning adjustments Transition Guidance: • Policy for deals in progress at old pricing • Grandfathering rules for existing customers • Timeline for honoring quoted prices • Escalation path for special requests Completion: This step marks the end of the pricing approval workflow. Deadline: 7 days from workflow start