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Product Pricing Overview
Salesforce CPQ provides several types of pricing discounts that sales reps can apply to their quote lines. Learn how and when the discounts are applied. (Salesforce CPQ Managed Package)
Required Editions
| Available in: All Salesforce CPQ editions. |
On a single quote line, you can apply discretionary discounts, partner discounts, discount schedules, and custom discounts. There are eight price fields included in Salesforce CPQ, and quote lines calculate each of these price fields in a specific order.
Salesforce CPQ includes the price fields so that you can track the calculations that occur after each discount or uplift is applied to a quote line. These fields also give you the flexibility to build automation that allows your pricing changes to occur exactly when and where you want.
The fields included on the Salesforce CPQ quote line object are:
- Contracted Price
- Customer Unit Price
- List Unit Price
- Net Unit Price
- Original Price
- Partner Unit Price
- Regular Unit Price
- Special Price
Each of the unit price fields represents the value after a calculation has occurred.
The list price is the quote line’s initial price. When you quote a product, Salesforce CPQ pulls the quote line’s list price from the product’s list price entry in your price book. If you select a product’s or quote line’s Price Editable field, you can override the list price in the quote line editor. The Pricing Method field in the product record is set to List by default, but you can change the pricing method to Cost or Block pricing.
Make sure that you review the Salesforce CPQ pricing method so that you can track pricing calculations. You can identify the price before a discount is applied, the price before proration, and more. You also have control over custom calculations, such as using a price rule to change a price to one of the fields in the chart.
Salesforce CPQ uses the following method to calculate the net price for a quote line.
| Price and Discount | Description |
|---|---|
| List Unit Price | The list unit price inherits this product's price book entry by default. |
| Contracted Price (if any) | If the quote line has an associated contracted price on the account, the contracted price overrides the list unit price. |
| Special Price | The special price is inherited from the contracted price, a custom price set by the Salesforce admin, or the list price. Pricing calculations start with this value. |
| Prorate Multiplier | The prorate multiplier is the subscription term divided by the default term. |
| Prorated List Price | The price after the prorate multiplier is applied to the list price. |
| Volume Discount Schedules | The volume discounts set on the quote line. |
| Option Discounts | The discounts on the product option record. |
| Term Discount Schedules | The discount schedules based on subscription product terms. |
| Discount Schedules | If the quote line has discount schedules, Salesforce CPQ applies the appropriate discount to the prorated price. The resulting value becomes the regular unit price. |
| Regular Unit Price | The unit price before additional discount. If it’s a special price, the type is overridden with Special Price. |
| Additional Discounts | The discounts entered by the sales rep or using price rules. |
| Customer Unit Price | The net price before partner discounts. Calculated by applying discretionary discounts to the regular unit price. |
| Partner Discounts | Discounts entered by sales reps or using price rules. |
| Partner Unit Price | The partner price is the customer unit price with a partner discount applied. |
| Distributor Discounts | The discounts entered by sales reps or using price rules. |
| Net Unit Price | The net price is the unit price after all discounts are applied. |
| Price and Discount | Action | Value |
|---|---|---|
| List Unit Price | The list unit price is pulled from the price book entry. | $120 |
| Contracted Price | The contracted price is pulled from the account, and overrides the list unit price. | $100 |
| Special Price | The special price is inherited from the list price. | $100 |
| Prorate Multiplier | The prorate multiplier is calculated by dividing the subscription term by the default term. 12 ÷ 1 = 12 The prorate multiplier is applied to the special price. |
$100 × 12 = $1,200 |
| Prorated Unit Price | $1,200 |
PartnersRUs wants to buy 100 new monitors. Your system admin configured a discount schedule with a 10% discount for purchasing more than 99 monitors.
| Price and Discount | Action | Value |
|---|---|---|
| Prorated Unit Price | $1,200 | |
| System Discounts | A 10% discount is applied using price rules. | -$120 |
| Regular Price | $1,080 |
While PartnersRUs is happy with the bulk discount, they reveal that your competitor’s price is still much lower. So, you offer PartnersRUs an extra 10% discount and the 5% partner discount.
| Price and Discount | Action | Value |
|---|---|---|
| Regular Unit Price | $1,080 | |
| Additional Discount | A 10% discount is entered by the sales rep. | -$108 |
| Customer Unit Price | $972 | |
| Partner Discount | A 5% discount is applied using price rules. | -$48.60 |
| Partner Unit Price | $923.40 |
PartnersRUs isn’t a distributor, so you can’t add distributor discounts to their quote. The full calculation for the net total is shown in this chart.
| Price and Discount | Action | Value |
|---|---|---|
| List Unit Price | The list unit price is pulled from the price book entry. | $120 |
| Contracted Unit Price | Pulled from the account, and overrides the list unit price | $100 |
| Special Price | The special price is inherited from the list price. | $100 |
| Prorate Multiplier | The prorate multiplier is calculated by dividing the subscription term by the default term. 12 ÷ 1 = 12 The prorate multiplier is applied to the special price. |
$100 × 12 |
| Prorated Unit Price | $1,200 | |
| System Discounts | A 10% discount is applied using price rules. | -$120 |
| Regular Unit Price | $1,080 | |
| Additional Discount | A 10% discount is entered by the sales rep. | -$108 |
| Customer Unit Price | $972 | |
| Partner Discount | A 5% discount is applied using price rules. | -$48.60 |
| Partner Unit Price | $923.40 | |
| Distributor Discount | none | $0.00 |
| Net Unit Price | $923.40 |
