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In most residential projects, the price list is a starting point. Buyers negotiate, sales managers want to close, and discounts happen. Some are necessary. The problem is when nobody can say how much was given away across a project, by whom, and why.
A good discount policy does two things at once. It stops unapproved giveaways, and it gets approvals back to the sales manager quickly enough that the buyer is still at the table. This article shows how to set one up.
01Discounts come in many forms
Rate cuts are only one kind. Count all of these as discounts:
- Reduction in base rate per sq ft
- Waiver of floor rise or PLC
- Free or discounted car parking
- Stamp duty or registration borne by the developer
- Free modular kitchen, appliances or furniture
- Waiver of maintenance or club charges
- A better payment plan at the same price
- Waiver of interest on delayed payments
- Extra brokerage paid to a channel partner to close a deal
Each has a rupee value. Your policy and your reports should convert all of them into rupees per booking and per sq ft.
02Measure the leakage first
Before tightening rules, measure what is happening. Take the last 50 bookings and, for each, compare the list price on the booking date with the net value realised after all concessions.
| Booking | List price (₹) | Concessions (₹) | Net realised (₹) | Discount % |
|---|---|---|---|---|
| A-1203 | 92,40,000 | 1,80,000 (rate) + 2,10,000 (PLC waived) | 88,50,000 | 4.2% |
| A-0702 | 84,00,000 | 3,00,000 (parking free) | 81,00,000 | 3.6% |
| B-1501 | 1,02,00,000 | 0 | 1,02,00,000 | 0.0% |
Even a modest average adds up. If 200 bookings each carry ₹2,00,000 of unrecorded concessions, the project has given away ₹4 crore.
03Build an approval matrix
Set limits by role, in rupees per sq ft or as a percentage, and apply them to the total of all concessions on a booking.
| Role | Can approve up to | Typical turnaround |
|---|---|---|
| Sales executive | ₹0 (can request only) | n/a |
| Sales manager | ₹100 per sq ft carpet or 1.5% of agreement value | Within 15 minutes |
| Sales head | ₹250 per sq ft carpet or 3% | Within 30 minutes |
| Promoter or director | Above sales head limit, and any unit below the floor price | Same day |
- Floor price per project. No discount can take a unit below a set floor without the promoter's approval.
- Validity. An approved discount is valid for a set period, for example 48 hours, tied to a specific buyer and unit.
- Reason required. Every request records why: competing offer, bulk purchase, payment plan, employee referral.
- One request per booking. Stacking several small concessions to stay under limits counts as one total.
04Speed matters as much as control
Discount policies fail when approvals are slow. If a sales manager has to call the sales head, who is in a meeting, and then wait for an email, the buyer leaves. Reps then learn to promise first and ask later.
- Requests go to the approver's phone with the unit, buyer, list price, proposed price and reason on one screen.
- The approver can approve, reject or counter with one tap.
- If the first approver does not respond within the turnaround time, the request escalates.
- The decision attaches to the quote, so the cost sheet shows the approved price.
LeadOne AI sends discount approvals to the approver's phone and records each decision against the quote, with an audit log of who approved what.
05Tax and legal checks
- Discounts must be reflected in the agreement value. Side arrangements outside the agreement create disputes and tax exposure.
- Offers made in advertisements must be honoured as advertised. Section 12 of the RERA Act makes the promoter liable for incorrect statements in advertisements.
- GST is charged on the agreement value. A discount reduces both the price and the GST.
06Reports to review every week
| Report | What to look for |
|---|---|
| Average discount per booking, by rep | Outliers who always need approvals |
| Discount by type | Whether waivers and freebies are growing |
| Discount by unit type and floor | Units that need a price correction rather than case-by-case discounts |
| Approval turnaround | Approvers who slow sales down |
| Rejected requests that still booked | Proof that the discount was not needed |
If the same unit type always needs a discount to sell, the list price is wrong. Fix the price list instead of approving the same exception every week.
07A worked example
A buyer likes a 700 sq ft carpet 2 BHK on the 12th floor with a list agreement value of ₹70,90,000. They ask for ₹68,50,000, citing a competing offer. The sales manager raises a request.
| Step | Detail |
|---|---|
| Concession requested | ₹2,40,000, which is about 3.4% of agreement value or about ₹343 per sq ft carpet |
| Sales manager limit | 1.5% or ₹100 per sq ft, so the request goes up |
| Sales head limit | 3% or ₹250 per sq ft, so the request goes up again |
| Promoter decision | Counters at ₹69,50,000, a concession of ₹1,40,000 (about 2%) |
| Outcome | Approved price attaches to the quote; valid for 48 hours for this buyer and unit |
Every step is recorded: who asked, why, who approved and at what price. If the buyer books, the booking carries the approved price and the concession amount, so reports show exactly what was given away.
08Rolling out a new policy
- Explain the reasons to the sales team before the start date. Show the leakage numbers.
- Honour commitments already made in writing before the start date, and list them.
- Set approval turnaround targets and publish them, so reps trust the process.
- Review the limits after 30 days. If most requests go to the top, the limits or the price list may be wrong.
