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Who Should Be Allowed to Approve the Discount?

Discount authority is often designed as a hierarchy: salesperson can move by a small amount, sales manager by more, dealer principal by more again. That structure protects margin, but it can become too blunt for aged stock. A $1,500 discount on a 12-day vehicle with strong demand is not the same decision as a $1,500 discount on a 135-day vehicle facing a model change and a curtailment. The approval rule should recognise the economics, not only the dollar amount. A fixed limit ignores the...