If your company uses discounts to win deals, you know how quickly things can go sideways. One rep gives away too much, someone else needs VP sign-off, and suddenly your margins are toast. This guide is for sales ops, pricing managers, and anyone tasked with keeping discounts under control without bottlenecking the whole process. We're diving deep into how to build approval workflows in Vendavo, a popular pricing tool. I'll walk you through the setup, point out the gotchas, and help you avoid the usual headaches.
Why Set Up Approval Workflows in the First Place?
Let’s be real: letting anyone discount however they like is a fast track to chaos. Approval workflows make sure discounts are controlled, documented, and—most importantly—profitable. With a proper setup:
- Sales teams know exactly what’s allowed.
- Managers don’t get bombarded with every little deal.
- Finance and pricing have a paper trail.
But don’t overcomplicate it. The goal is to make approvals fast and sensible, not to create more hoops.
Step 1: Map Out Who Actually Needs to Approve Discounts
Before you even log into Vendavo, get your people in a room (or on a call) and agree on these basics:
- Who can approve what? (e.g., sales manager for up to 10%, VP for more)
- Are there exceptions by customer type or product?
- How fast do approvals need to happen? (No one loves a 3-day wait)
Pro tip: Don’t copy last year’s org chart. Build the workflow around how deals actually get done, not how they “should” on paper.
Step 2: Get Your Discount Thresholds Straight
Vendavo’s workflow builder is only as good as your rules. You need clear thresholds, such as:
- Discounts up to 5%: auto-approved.
- 5–10%: needs sales manager.
- 10–20%: needs director.
- Over 20%: VP or pricing committee.
You can go fancier—say, different limits for strategic accounts—but start simple. You’ll save yourself a ton of debugging later.
What works: Simplicity. The more exceptions you add, the more approvals get stuck.
What to ignore: Requests to “just add a special rule for this one customer.” That’s a slippery slope.
Step 3: Set Up User Roles and Permissions in Vendavo
Now, log into Vendavo and go to the admin or user management section. Here’s what to check:
- User roles: Assign users to defined roles (sales rep, manager, VP, etc.).
- Permissions: Make sure each role can only see and action what they're supposed to.
- Delegates: Set up backups for when someone’s out on vacation.
Don’t skip the delegate step. One missing manager can grind approvals to a halt.
Step 4: Build the Workflow Rules
Head to the workflow configuration area (this can be called “Approval Workflows” or “Discount Workflows” depending on your Vendavo version).
Here’s how to build out the rules:
- Create a new workflow.
- Define entry criteria: This usually means “when a quote discount exceeds X%.”
- Set approval steps:
- Add steps in order of increasing authority (sales manager, director, etc.).
- Assign each step to a user role or named person.
- For each step, set up:
- Notification method (email, in-app, both)
- Time limits (e.g., escalate after 24h)
- Add exceptions if you must: For strategic products or accounts. But keep these rare.
- Save and test with sample data.
Gotchas:
- Default approver: If no one’s assigned, deals get stuck. Always set a fallback.
- “Looping” rules: Avoid circular logic—e.g., a manager required to approve their own deals.
Step 5: Test Your Workflow (Don’t Skip This)
Before you roll anything out, run test quotes through every path:
- Try deals that require no approval.
- Try deals that hit each approval threshold.
- Try edge cases (e.g., multiple discounts, special products).
- Test what happens if an approver doesn’t respond.
It’s boring, but you’ll catch broken notifications, missing permissions, and logic errors now, not when a real deal is on the line.
What works: Having a checklist of test cases. Don’t just “poke around.”
What doesn’t: Trusting that your logic is perfect the first time.
Step 6: Communicate the New Process (and Keep It Simple)
Don’t just flip the switch and hope for the best. Tell your sales team:
- What the rules are
- How to submit for approval
- How long it should take
- Who they can bug if something’s stuck
A one-page cheat sheet beats a 50-slide deck any day.
Step 7: Monitor and Adjust
Once it’s live, keep an eye on how it’s working:
- Are deals getting stuck?
- Are managers getting overloaded?
- Are reps finding workarounds (like splitting deals to avoid thresholds)?
Vendavo usually has decent reporting on approval times and bottlenecks. Use it. If you see patterns—like one manager always delaying things, or too many deals hitting the highest threshold—tweak your workflow.
What works: Regular reviews every quarter. What to ignore: Requests to “just turn off approvals” after one tough quarter.
Pro Tips and Common Pitfalls
- Automate what you can: If certain small discounts are always approved, don’t make people click buttons. Let Vendavo handle it.
- Don’t rely on email alone: People miss emails. Use in-app notifications where possible.
- Backup approvers: Always have at least one backup for each step.
- Audit regularly: Make sure roles and permissions are up to date when people leave or change jobs.
- Document everything: When someone asks “why did this discount go through?” you should be able to show the approvals.
What to Ignore (Seriously)
- Endless exceptions: Every time you add a new “one-off” rule, your workflow becomes harder to maintain. Most companies regret it.
- Overly complex approval chains: If it takes three VPs to approve a 12% discount, your process is broken.
- Manual workarounds: If people are approving deals via email or chat outside Vendavo, your workflow isn’t working.
Keep Things Simple and Iterate
Setting up discount approvals in Vendavo isn’t rocket science, but it does take some thought. Start simple—clear roles, clear thresholds, and a workflow that matches how your team really works. Don’t try to solve every edge case up front. Get the basics working, roll it out, then iterate based on what actually happens.
Most of all: keep the process transparent and friction-free for your sales team. If you do, you’ll keep margins healthy without slowing down deals—or driving everyone nuts.