Step 1
Total standard value equals standard contract value multiplied by deal count.
Public tool method · Version 1.0.0
Pricing Authority
Use this method when you need to answer: How much standard value is lost through discounting and which guardrail should change? It turns the evidence you supply into a Discount leakage model and guardrails by applying explicit, versioned decision rules. The result is not a benchmark or certification. It shows the strongest evidence, riskiest input, next action, owner, and review date so another reader can inspect and challenge the decision.
Last material review 2026-08-08 · Next review 2027-02-04
Question answered
How much standard value is lost through discounting and which guardrail should change?
The discount leakage model makes standard value, realized value, deal count, reason, and approval visible.
Step 2
Realized value equals realized contract value multiplied by deal count.
Step 3
Absolute leakage equals total standard value minus realized value, with a floor of zero.
Step 4
Leakage rate equals absolute leakage divided by total standard value.
Step 5
A rate at or above 20% is High leakage; 8% to under 20% is Review; below 8% is Within guardrail.
Assumptions and limits
- Management estimate only; not financial or accounting advice.
Usefulness hypothesis
Visible leakage by deal group supports clearer exception rules.
Primary metric: Model export or pricing-workshop pre-read
Worked example and modes
The same method, preserved entry intent.
- Segment
- New mid-market
- Standard Value
- 120000
- Realized Value
- 96000
- Deals
- 4
- Approval
- Manager
- Reason
- Competitive match
Distribution package
Use, embed, and share the instrument.
Blank CSV template90-second demonstrationThree share treatmentsPlain-language answer
Embed with canonical attribution
<iframe src="https://petrichorgrowth.com/tools/pricing-authority/embed.html" title="Pricing Authority" loading="lazy" width="100%" height="900"></iframe>
<p>Source: <a href="https://petrichorgrowth.com/tools/pricing-authority">Pricing Authority by Petrichor</a></p>Ownership and change control
Who keeps the result defensible?
Product
Petrichor product
Method
Petrichor strategy
Evidence
Petrichor research
Privacy
Petrichor operations
Security
Petrichor web platform
Distribution
Petrichor growth
Support
Petrichor client experience
A material method change requires a reason, impact note, fixture rerun, semantic-version increment, and public entry in the method change log.
Related decision methods
Continue through the evidence chain.
Reality Audit
Identify which strategic assumptions require evidence, testing, or retirement.
Relevancy Audit
Identify where positioning has drifted from present market priorities.
Revenue Story
Test whether the growth narrative matches the actual revenue mechanics.
Related plain-language answers
Reality Audit answerRelevancy Audit answerRevenue Story answer
Method questions
What another reader should know.
What does the Pricing Authority method produce?
A versioned Discount leakage model and guardrails with visible reasoning, evidence status, next action, ownership, and review date.
What inputs does Pricing Authority require?
Only the structured decision evidence named by the instrument. Missing or estimated inputs remain visible in the result.
Does the method use AI or a cross-customer benchmark?
No. It applies deterministic rules to the user's inputs and does not compare one customer with another.
When is the method reviewed or changed?
The current method is reviewed at least every 180 days. Material changes require new fixtures, a version increment, and a public change note.
When should the artifact move into facilitated work?
When the unresolved decision requires team challenge, evidence reconciliation, dissent, ownership, and an organizational commitment.