Name: How to implement Custom Discounts in Salesforce CPQ
Brand: Jade Global
Rating: 4.8 (48 reviews)

Introduction:

In any Business, Discounts are reductions of the regular price of a product or service. It can be beneficial to both businesses and customers in terms of improving sales and better purchasing parity. The main reasons to implement discounts are

To increase sales
To bring awareness of brand
To attract new customers and to maintain better relationship with them
To gain competitive advantage

Salesforce has a tool called Configure Price Quote (CPQ) which enables businesses to create accurate sales quotes which are free of inefficient steps and errors. These quotes can be dynamic according to various customer situations to provide volume discount, bundle offers, promotions, price slab-based discounts and more.

It helps shorten sales cycle for sales representatives through guided selling by making them answer key customer data. Due to the automated quote generation through highly customizable templates, it contributes immensely to productivity of teams too. Further it helps maximize sales through intelligent quotes that are powered by Salesforce Einstein Artificial Intelligence application.

Salesforce CPQ provides different types of discounts and its calculations on price of products. Below is a comprehensive view of the functionalities of the tool.

Standard Salesforce CPQ Price calculation with Discounts:

The price of a product involves with different types of discounts

Additional discount: This discount will be given by Sales rep. It will be applied on regular price of a product. The final price after applying additional discount is known as customer price
Partner discount: This discount will be given by sales rep to the partner customers. It will be applied on customer price. The final price after applying partner discount is known as partner price
Distributor discount: This discount will be given by sales rep to the distributor customers. It will be applied on partner price. The final price after applying distributor discount is Net price

Example:

Consider a product’s regular price as $1000. Business is offering 10% additional discount, 10 % Partner discount and 10% and Distributor discount to customer.

Standard Salesforce CPQ price calculation:

Customer price: Regular price- 10% of Regular price = $1000 -10% of $1000 = $1000 - $100 = $900.

Partner price: Customer price - 10% of Customer price = 10% of $900 = $900 -$90 = $ 810.

Net Price: Partner price- 10% of Partner price = 10% of $900 = $810 - $81 = $729.

The overall discount applied on the regular price is 27.1% and the final price on product is $729.

Disadvantages:

Business is not able to give cumulative discounts to its customers
Standard Salesforce CPQ is offering only these (Additional, Partner, Distributor) types of discounts. Business may have different types of discounts

Solution:

If the business is offering different types of discounts like Reseller, Distributor, Paid Up Front (PUF), Tech Resource discounts then we may need to implement Custom Cumulative Discounts.

Implementation of Custom Cumulative discounts:

The cumulative discount is addition of all the discounts which will be calculated by using price rules.

Example:

Consider the product regular price as $1000. Business is offering 10% additional discount, 10 % Partner discount and 10% and Distributor discount to customer.

The cumulative discount can be achieved by using price rule.

The overall cumulative discount applied by this method on regular price is 30%.

Net Price = Regular price- 30% Regular price= $1000 - 30% of $1000 = $700.

If there are 5% reseller, 3%Paid Up Front (PUF) and 2% tech resource discounts included in addition to above discounts then the total discount is 40%.

Net Price = Regular price- 40% Regular price = $1000 – 40% of $1000 = $600.

Price Rule:

Price rules are used to automate calculations and to update fields with calculated values.

Different Sections in Price rule: Price rule syntax_image Price Conditions:

A price condition compares the summary variable with field value, or formula set against another field.

syntax_image Lookup Queries:

Lookup queries in price rules are to evaluate field values on objects other than quotes.

syntax_image Price Actions:

When price condition meets, then the price actions will be executed to update the field value with the calculated value.
A price action sources the value from a summary variable, formula, user-defined value, or other quote line field and sends that value to the target field. Refer this blog to learn Implementation of REGEX in Salesforce

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About the Author

Srilakshmi

Associate Analyst (CRM)

Srilakshmi is working with Jade Global as an Associate Analyst in CRM. She has 4+ years of extensive experience on Implementation projects in Sales Cloud, Nintex DocGen, CPQ. She is fervent to acquaint herself with the new things. She works with the business directly to develop solutions and provides support to current Salesforce.com for various clients of Jade Global Inc.