In Salesforce, a discount is applied to the Sales Price of a product in order to reduce the total value of a line item. The discount is limited and controlled by Salesforce to be in the range 0-100%. You cannot have a discount more than 100% or less than 0%.
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What is volume-based discounting in Salesforce?
For example, your business can reward customers who buy large quantities of items by giving them a volume-based discount to encourage bigger sales. Salesforce CPQ can apply volume-based discounts automatically so that sales reps don’t have to search through tables of out-of-date discounting data.
What is the discount amount field used for?
Discount Amount is a custom currency field. Use this formula to calculate the discounted amount of an opportunity rounded off to two digits. This example is a number formula field on opportunities that uses a custom percent field called Discount Percent. This formula adds a “Discount Approved” checkbox to an opportunity.
How do I apply discounts to quote lines?
Apply discounts directly to quote lines in the form of percents or per-unit amounts. Configure products to be nondiscountable. Add new unit and total discount units to the Quote Line Editor. Identify which quote, group, and quote line discount fields affect customer price, and which fields have precedence.
Why would a sales rep apply their own custom discount?
These fancy, automated discounts are nice, but sometimes a sales rep wants to apply their own custom discount. Maybe they’re trying to beat a competitor’s price during negotiations, or maybe they want to discount a quote line 100% to give it away as a freebie.
How do I apply a discount to a product in Salesforce?
On the CC Coupons tab in your org, click New.Enter the coupon details that are visible to your buyers on the storefront. … Enter the discount details. … Scroll to the Coupon Target section, and specify the product that the discount applies to. … Scroll back to the coupon details, and specify other coupon usage requirements.More items…
What are discount schedules?
Discount schedules provide tier-driven discounts to the list price of your quote lines. For example, you can sell routers for $25 each, but apply the following discounts based on how many routers a customer buys. In this case, you create a discount schedule with three tiers.
What are discount schedules in Salesforce CPQ?
Salesforce CPQ offers discount schedules to create volume discounts based on quantity or terms for your quote lines. You can set the quantity or term ranges in tiers of percentages or amounts of currency. There are two types of discount schedules – Range and Slab.
How do you make a discount price?
How to calculate discount and sale price?Find the original price (for example $90 )Get the the discount percentage (for example 20% )Calculate the savings: 20% of $90 = $18.Subtract the savings from the original price to get the sale price: $90 – $18 = $72.You’re all set!
How do I add a discount to CPQ?
Salesforce CPQ Quote Line Additional Discount UnitNavigate to the Quote Line Object.Create a new Picklist Field with the API Name AdditionalDiscountUnit.Determine what picklist values your users should be allowed to use and add the picklist values to Additional Discount Unit. … Navigate to a Quote and click Edit Lines.More items…
What is price rule in Salesforce CPQ?
Price rules automate price calculations and update quote line fields. This feature is useful if your business contains products that change in response to the presence of other products on your quote.
How do you assign a discount schedule to a product?
3:0025:59Salesforce CPQ Discount Schedule | EP16 – YouTubeYouTubeStart of suggested clipEnd of suggested clipSo the way discount schedules work depend on our setting whether it’s a slab or a range for a slabMoreSo the way discount schedules work depend on our setting whether it’s a slab or a range for a slab discount schedule the discounts are applied progressively through each tier.
What is slab discount?
Slab discount schedules can align with block-priced products to create price schedules. This setup creates a price schedule that moves from flat pricing to per-unit pricing.
Which is a salesforce CPQ pricing method for products?
Salesforce CPQ uses the negotiated price on new quotes, renewal quotes, and amendment quotes. The quote line’s effective quantity field represents the actual quantity that Salesforce uses while calculating prices for that quote line.
How does discount work?
Summary: Stores often sell goods for a discounted price. Typically, a store will discount an item by a percent of the original price. The rate of discount is usually given as a percent, but may also be given as a fraction. The phrases used for discounted items include, ” off,” “Save 50%,” and “Get a 20% discount.”
What are the 2 types of discounts?
Discounts may be classified into two types: Trade Discounts: offered at the time of purchase for example when goods are purchased in bulk or to retain loyal customers. Cash Discount: offered to customers as an incentive for timely payment of their liabilities in respect of credit purchases.
What is an example of discount pricing?
When you offer a volume discount, your customers end up paying less per item as long as they buy a larger amount of that item. For example, Ujido, an online matcha tea provider, offers a 10-percent discount if you buy 8 boxes of their product. Ujido volume discount pricing example.
How does Salesforce CPQ work?
Salesforce CPQ supports this kind of basic discounting, but it also does much more. For example, your business can reward customers who buy large quantities of items by giving them a volume-based discount to encourage bigger sales. Salesforce CPQ can apply volume-based discounts automatically so that sales reps don’t have to search through tables of out-of-date discounting data. CPQ also keeps track of different types of discounts, such as partner or distributor discounts, so that pricing details are never lost. Salesforce CPQ aims to make discounting easy by simplifying or automating the process.
What is Salesforce CPQ?
Salesforce CPQ aims to make discounting easy by simplifying or automating the process.
Can you use CPQ to discount products?
Now that you have a Salesforce CPQ- enabled org, you’re ready to learn the many ways that you can use CPQ to discount products manually and automatically.
Does Salesforce CPQ automatically adjust prices?
There are a lot of ways that Salesforce CPQ can automatically adjust prices, some of which we tackled in the Pricing Methods for Salesforce CPQ module. There you can learn how CPQ calculates pricing before discounts. In this module, we’ll focus on how discounts are applied both manually and automatically.
What is option discounting?
Option discounting is an easy way to automatically discount products sold as part of a bundle. Another way to automate discounts is to use a tool called Discount Schedules, which lets admins set up volume-based pricing. In the next unit we see how to use Discount Schedules to reward customers who buy in bulk.
What is a bundle in Salesforce?
If you’ve completed the Configurable Bundles in Salesforce CPQ Trailhead badge, you know that bundles are collections of products sold together as a set. They’re a great way to help sales reps remember what’s supposed to be sold together and what products are available for upsells.
Can you discount a bundle in Salesforce?
Have you ever come across a great deal on a bundle? Maybe it’s all three movies in your favorite sci-fi trilogy sold for one low price. Or maybe it’s a discount on the latest cell phone when packaged with a year of service. To encourage customers to buy bundles, businesses often discount the bundled products while leaving the unbundled products full price. Salesforce CPQ supports exactly this scenario, making it easy for administrators to set up bundle-based discounts.
Can you set up automatic discounts on bundles?
It’s easy for administrators to set up automatic discounts when products are sold in a bundle, and sales reps can see discounts applied without any additional work.
Does Salesforce CPQ use cost plus markup?
Only one adjustment can be used for the Special Price field, so Salesforce CPQ prioritizes them. Cost Plus Markup has the highest priority. If that’s not used, then Contracted Pricing is applied. Lastly, if no other adjustments exist, the Option discount is applied to the List Price.
How does discounted by package work?
Discounted by Package only works when the lead product discount type is set to percent. If amount, unit, or total is used, the option’s discount remains locked but is still affected by any group or quote-level discount! If the option is set so list price is Included, or the product record for the option is flagged as Non Discountable, no discount is applied to the option.
When to use total discount?
Sales reps use the Total discount type when the quote line has a quantity greater than one, and they don’t want to figure out a per-unit discount to reach a quote line goal. For example, they just know the quote line needs to be $299, and it doesn’t matter how each unit is discounted.
What happens when you save a quote?
When the quote is saved, any values entered as desired Total or Unit prices are converted to an amount-based discount. For example, a sales rep enters $75/Unit as the discount for a $100 product. When the quote is saved, the quote line UI updates to report a $25 discount. This can be surprising to beginner users since it looks as though CPQ is forgetting their choice.
What happens if a product is marked as non discountable?
As a side note, if a product is marked as Non Discountable then it ignores both group and quote-level values in the Additional Disc. field.
Does Salesforce automatically apply discounts?
Throughout this module you’ve seen the various ways Salesforce CPQ automatically applies discounts for sales reps. These fancy, automated discounts are nice, but sometimes a sales rep wants to apply their own custom discount. Maybe they’re trying to beat a competitor’s price during negotiations, or maybe they want to discount a quote line 100% to give it away as a freebie. Whatever the reason, CPQ allows sales reps to discount line by line to get their quote pricing just right.
Is there a way to apply a 10% discount?
Technically speaking, discounts are always applied at the quote line level; there is no way to apply a general, quote-level discount. That said, there is a quote field that’s used in discounting, named Additional Disc. (%). This field acts as a default, or fallback, discount percent if quote lines are not discounted individually. In other words, entering a 10% discount at the quote level applies a 10% discount to any quote line that doesn’t otherwise have a discount.
Does manual discount affect customer unit price?
You can also see that manual discounts affect the field named Customer Unit Price. CPQ always takes whatever the regular price is, then deducts the manual discount. On a related note, there’s a formula field named Additional Disc. that takes the difference between these two prices (the regular price and the customer unit price) and multiplies by quantity. This field is handy when creating your proposal template since it contains a value when manual discounts are applied, unlike the Additional Disc. (%) and Additional Disc. (Amt) fields, where one or the other are blank.
What is tiered discount?
With tiered discounts, the discount amount increases as the shopper buys more products or spends more money. For example, a shopper gets 10% off a $50 purchase of Brand-X apparel, 15% on $100, and 20% on $150 or more. They must buy a certain brand and spend a certain amount to qualify.
What does Brandon want before he creates the promotions?
Before Brandon creates the promotions, he wants to learn more about how to control them.
What does exclusivity mean in Brandon?
With the exclusivity setting, Brandon can define if promotion types are mutually exclusive or relative to another promotion type. Here are the settings.
How many pairs of jeans can you get at 50% off?
For example, the customer must buy 2 pairs of jeans to get a third pair at 50% off.
Can you exclude products from promotions?
You can exclude certain products from a promotion within each promotion individually. You can also exclude specific products from all promotions globally. Brandon can prevent discounts on low margin products, for example, without having to configure a setting for each promotion.
Can you combine exclusivity with promotion?
In this case, exclusivity should be set to Cannot be combined with a promotion of the same class.
Do you need more code for a discount?
Some of the discount types , such as choice of bonus products, require more code in the storefront application.
What does 5 percent discount mean?
Price discounts apply to gross revenue. Therefore, a 5 percent price discount means giving away half your profit. Moreover, discount by more than 10 percent and the deal is loss making. The fully loaded margin in your business is probably a different figure. Nevertheless, you understand the impact.
Who recommends approving or rejecting each discount request with full knowledge of the impact on profit of each deal?
Tony recommends approving or rejecting each discount request with full knowledge of the impact on profit of each deal.
What is salesforce chatter?
That means the information is stored directly on the opportunity, for all to see, for all time.
What is option one in Opportunity?
Option one involves a custom date field on the Opportunity. When the deal is set to Closed Won, populate this field with the review date. If this is done manually (rather than by using a workflow rule, for example) then apply a validation rule to make sure a date is entered.
How to address sales training?
There are a number of ways to address this. The most obvious is to give sales people the training and coaching needed to negotiate effectively. But it’s not always one size fits all. You need management information to determine which sales people will benefit from different types of training”.
When is the second option appropriate?
The second option is appropriate if the cost of fulfillment varies from one region or segment to another.
Is it better to resist customer demands for discounts?
“Some people are just naturally better at resisting customer demands for discounts”, says Tony. “New or inexperienced sales people often find it more difficult, for example. However, teams or individuals that are under pressure to hit quota are also prone to giving unnecessary discounts.
Learning Objectives
Discounting in The Sales Process
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When a sales rep puts together a quote, it’s almost certain they will want to apply discounts to at least a few products. After all, they’re trying to negotiate a deal. Salesforce CPQ supports this kind of basic discounting, but it also does much more. For example, your business can reward customers who buy large quantities of items by giving them …
See more on trailhead.salesforce.com
The Price Waterfall
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There are a lot of ways that Salesforce CPQ can automatically adjust prices, some of which we tackled in the Pricing Methods for Salesforce CPQ module. There you can learn how CPQ calculates pricing before discounts. In this module, we’ll focus on how discounts are applied both manually and automatically. To keep track of adjustments to pricing and discounts, Salesforce …
Sign Up For A Developer Edition ORG with Salesforce CPQ
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To complete this module, you need a special Developer Edition org that contains Salesforce CPQ and our sample data. Get the free Developer Edition and connect it to Trailhead now so you can complete the challenges in this module. Note that this Developer Edition is designed to work with the challenges in this badge, and may not work for other badges. Always check that you’re usin…
Resources
Learning Objectives
See more on trailhead.salesforce.com
Buy The Bundle and Save
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If you’ve completed the Configurable Bundles in Salesforce CPQTrailhead badge, you know that bundles are collections of products sold together as a set. They’re a great way to help sales reps remember what’s supposed to be sold together and what products are available for upsells. Have you ever come across a great deal on a bundle? Maybe it’s all three movies in your favorite sci-fi …
Set Up An Option Discount
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AW Computing sells a number of hi-tech products in bundles and wants to offer its customers a discount on specific products when purchased in a bundle. The Security Console is one such bundle. It’s a suite of products designed for office security, including things like security key cards, door locks, and keypads. AW Computing wants to offer a 10% discount on the Interior Badge Re…
Option Discounts and Other Pricing Methods
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In the last unit, you read about the price waterfall, the series of price fields CPQ uses to track quote line pricing. One field, Special Price, is used to represent option discounts. However, CPQ also uses the Special Price field to represent the outcome of cost plus markup and contracted pricing adjustments. So what happens if option discounts are used with one of the other pricing …