If you work in pricing or sales ops at a big company, you know how quickly price exceptions can spiral out of control. All it takes is a handful of well-meaning sales reps cutting deals, then suddenly you’ve got margin leaks everywhere and no idea what’s “normal” anymore. This guide is for anyone who has to monitor, review, or approve pricing exceptions—and wants to use Vendavo to bring some order to the chaos.
No magic bullets here—just a grounded approach to using Vendavo’s tools so you actually get visibility and control, not just more dashboards nobody looks at.
1. Get Clear on What Counts as a Price Exception
Before diving into screens and workflows, pin down your company’s real definition of a “price exception.” Sounds basic, but most orgs fudge this.
Common types: - Discounts beyond standard guidelines - Special customer pricing (one-offs, contract terms) - Manual overrides in the quoting system - Free goods or “extras” not in the price list
Why it matters:
If you try to track everything, you’ll drown in noise. If you track too little, you miss the leaks. Decide what matters—then make sure Vendavo is set up to flag those specific things.
Pro tip:
Talk to your sales and finance leads. Ask what “keeps them up at night” with pricing. Build your Vendavo setup around those pain points, not just what’s easy to measure.
2. Set Up Your Exception Triggers in Vendavo
Vendavo isn’t magic—it only flags what you tell it to. Here’s how to focus its attention:
a. Define Exception Rules
You’ll need to create business rules for what triggers an exception. Vendavo can monitor for: - Discounts over X% on certain products - Prices below floor or target - Margin thresholds - Specific customer/segment deals
Don’t overcomplicate:
Start with 2–3 rules that matter most. You can always add more later. Overly complex rules slow things down and create busywork.
b. Configure Alerts and Workflows
Vendavo can notify the right people when an exception is triggered. Be ruthless about who gets notified—if everyone gets pinged, nobody cares.
- Assign owners for each type of exception (usually sales managers or pricing analysts)
- Set up escalation paths for exceptions that go unresolved
- Decide which exceptions must be approved, and by whom
What to ignore:
Don’t try to automate every nuance of your approval process. If it’s too rigid, people will just work around it.
3. Monitor Exceptions in Real Time
Now you’re tracking exceptions. The next step: actually looking at what comes in.
a. Use Dashboards, but Don’t Live in Them
Vendavo offers dashboards to see trends and outliers. They’re useful—just don’t let them turn into another “report graveyard.”
- Set up a weekly or monthly review with real stakeholders
- Look for patterns (certain reps, regions, or products always needing exceptions?)
- Drill down into root causes—not just the “what,” but the “why”
Honest take:
Dashboards are only as good as the action that follows. If nobody changes behavior, it’s just window dressing.
b. Slice the Data
Vendavo lets you filter exceptions by: - Salesperson or team - Product group or family - Customer segment - Geography
This helps you spot chronic problems—like one sales team always going outside the lines, or a product that’s always a fight to price.
4. Control Price Exceptions with Smart Approvals
It’s one thing to see exceptions; it’s another to actually manage them. Here’s how to use Vendavo to take back some control.
a. Build a Simple Approval Workflow
Vendavo can automate approval chains. Again, simpler is better: - Sales rep submits exception - Manager reviews and approves/rejects - (Optionally) Pricing or finance signs off if margin is below a certain point
What works:
- Fast, clear workflows—nobody wants to chase approvals for days
- Automatic notifications so nothing sits in limbo
- Audit trails (so you can see who said yes, when, and why)
What doesn’t:
- Multi-layered approvals for every tiny exception
- Constantly changing rules—keep it stable or nobody trusts the process
b. Set Guardrails, Not Roadblocks
Vendavo lets you set hard stops (no approval, no quote goes out) or soft warnings. Use hard stops sparingly. Too many, and sales will start working outside the system.
- Use soft warnings for minor overages
- Reserve hard stops for true deal-breakers (way below target margin, legal risks, etc.)
Pro tip:
Let some exceptions through for small deals—focus your energy on big-dollar or high-risk ones. Otherwise you’ll spend all day rubber-stamping $500 discounts.
5. Use Reports to Find—and Fix—Root Causes
Vendavo’s reporting can show you where you’re bleeding margin, but only if you use it to fix problems, not just measure them.
a. Run Regular Exception Reports
Look for: - Most common exception types - Frequent offenders (products, reps, customers) - Exception approval turnaround time - Financial impact (total margin lost to exceptions)
b. Close the Loop
Don’t just send reports to finance. Use them to change how you price. - Is your “list price” actually realistic, or does everyone ignore it? - Are your sales teams properly trained on pricing strategy? - Do you need new price tiers for specific segments or products?
What to ignore:
Don’t obsess over 100% exception-free pricing. Some exceptions are the cost of doing business. Aim for fewer, smaller, and more justified exceptions—not zero.
6. Keep the Human Element
Software’s great, but people still matter. Vendavo is a tool, not a silver bullet.
- Train sales and pricing teams on why the rules exist
- Get feedback on what’s working (and what isn’t)
- Be willing to tweak as you learn—no setup is perfect out of the gate
- Don’t punish honest mistakes—focus on systemic issues
Honest take:
The best pricing teams use tools like Vendavo to enable smarter decisions, not just to catch “rule-breakers.” If people are always working around your process, your process is probably broken.
Wrapping Up: Start Simple, Learn, and Adjust
Vendavo can help you get real control over price exceptions—but only if you set it up to track what matters, keep workflows simple, and actually use the data to improve. Don’t try to build the perfect process on day one. Pick a few key exceptions, get visibility, and start making changes. Iterate as you go.
You don’t need a perfect system—just one that helps you spot problems and fix them, before they turn into headaches.