A Comprehensive Guide to Salesforce CPQ Discounting Tools

Every organization must provide fast and accurate quotes to leads. However, companies that provide highly configurable products or simply use unique terms of cooperation with partners and customers frequently find it difficult to generate estimates promptly and precisely. The Salesforce CPQ application supports customized orders, helps sales representatives save time, lowers expensive mistakes, and enhances client experiences.

Today, we’re going to introduce you to CPQ, one of the most popular Salesforce products.  In this blog post, we will go through a comprehensive guide to Salesforce CPQ discounting tools in which we’ll include what is Salesforce CPQ, its benefits, and CPQ’s discounting tools. So, read on.

What is Salesforce CPQ?

CPQ stands for Configure, Price, and Quote. The CPQ software from Salesforce CRM was created to enable the setup of product or service prices. While CPQ is the best tool for sales optimization, intelligent quotations for clients account for even the smallest details of your agreements and clients’ needs. The CPQ technology generates quotes automatically far more quickly than any sales representative could ever accomplish manually. Have you and your customer agreed that they will purchase 90 Hoover cleaners and receive one extra?  It’s already in your quote. Does your consumer need delivery more quickly and is willing to pay more for it? Done!

When you set up Salesforce, you add the items you sell and their prices. Then, when a member of the sales team creates a quote and includes these items there, Salesforce automatically retrieves the prices from the pricing list, multiplies them by the quantity, and displays the total that the client must pay. Additionally, CPQ enables automatic quote handling, which is more versatile and efficient.

Benefits of Salesforce CPQ

Configure Price Quote (CPQ) is a fantastic sales tool that helps companies to generate customizable, error-free sales quotes for clients. Even the most complex quotes can be handled quickly by using CPQ software. Additionally, CPQ also enables you to:

1. Prevent mistakes that have an impact on costs – Salesforce CPQ enhances accuracy by keeping track of all the information regarding price and policy changes.
2. Create quotes more quickly – Integrate CPQ with other business apps to keep track of as much information as you can about your clients and prevent forgetting crucial details.
3. Upsell and cross-sell to increase sales – The sales representatives always know about the additional features that a Salesforce CPQ product package will provide for your customers. CPQ keeps track of client preferences and makes recommendations that fit.
4. Make the selling process easier – The guided selling function makes it possible to collect customer data from prospective customers and then create more accurate quotes with higher order accuracy.

Salesforce CPQ Discounting Tools

Discounting Tools enable the price of the products in a quote to be automatically discounted based on the terms of the contract. To begin with, you should be aware that in order to operate the following pricing kinds (which refers to a group of attributes on the Quote Line object that decide the price of the product for the consumer; just in case: Quote Line is a Junction object between Quote and Product), you must first grasp how CPQ functions.

Now you should be familiar with one more term known as “the price waterfall”. This indicates that these prices operate in a downward motion, like a waterfall. And the other phrase “product bundle” refers to offering discounts to clients who buy products in a bundle. You can offer discounts to customers who buy a specific product in a bundle.

In simpler words, Salesforce CPQ offers discount schedules for your quotation lines that enable you to set up bulk discounts based on the quantity or the terms. The quantity or phrase ranges can be defined using tiers of percentages or dollar values.

Given Below are the Salesforce CPQ Discounting Tools:

1. Optional Discount: If a product is sold as part of a bundle, a discount is offered known as an optional discount. Now let’s take an example of the printer. Naturally, you can also market this cartridge as a standalone item. However, if you were to price it separately, it would be, say, $50. Additionally, it will cost $40, if you sell it as a component of a printer product package.
2. Volume-Based Discount Schedule: A volume-based discount schedule is one that offers a fixed discount or one that is based on a portion of the purchase volume.
3. Manual Discount: The outcome of the Manual Discount computation is stored in the Customer Price, whereas the Regular pricing serves as the foundation price (remember the pricing waterfall?) from which the discount is computed. You can disable the Manual Discount setting. Check the Non-Discountable field on the relevant Product to do this. Manual discounts may be set in percentages or dollar amounts.
4. Partner and Distributor Discount: As the name suggests, this technique is utilized to provide the client with a further partner discount. The Distributor Discount and Net Unit Price attributes on the Quote Line object contain the values for these discounts. They are computed via the following formulas:

Partner Price = Customer Price – Partner Discount

Net Price = Partner Price – Distributor Discount

In Conclusion

The Salesforce CPQ app is ideal for increasing sales. Your sales representatives can generate quotes using CPQ for each partnership or customer agreement. Now, the sales team won’t have to spend hours checking their quotes just to make sure they didn’t forget any crucial information.