Option Pricing in Salesforce CPQ

In this blog, we explore the strategic approach of bundle pricing and its implementation within sales processes, particularly focusing on Salesforce CPQ (Configure, Price, Quote) software. By understanding and applying these principles, businesses can enhance their sales strategies and improve customer satisfaction. Here’s what you’ll gain from this read:

• Insight into Bundle Pricing: Learn how pricing products in a bundle can significantly increase sales by offering customers more value for less.
• Guide on Implementing Option Pricing: Step-by-step instructions to enable option pricing for product options within a bundle.
• Understanding Multi-Currency Limitations: An overview of the challenges of applying option pricing in multi-currency organizations and how to navigate them.
• Clarity on Pricing Method Precedence: Discover how Salesforce CPQ prioritizes different pricing methods when calculating the cost of bundled options.
• Practical Use Case Analysis: A real-world scenario illustrating common issues and solutions in bundle pricing within Salesforce CPQ.

Let get started! 

Bundle Pricing

To encourage customers to buy more bundles, a product can be priced lower when sold in a bundle than when sold on its own. Option pricing is a great way to override the pricebook price for an option record in a bundle. For example, an SSD hard Drive, when sold in a laptop bundle, costs $150, whereas when sold as a standalone product costs $200.

Implementing Option Pricing

• Select the parent product from the “All Products” list view.
• In the “Options” related list, select the “Option” on which Option Pricing needs to be enabled.
• Click “Edit”, and in the “Unit Price” field, specify the Option’s price.
• Click “Save”.

Multi-Currency Limitations

Option pricing doesn’t support multi-currency. Therefore, override price can be defined in a single currency only. To adjust the prices of options in a multi-currency org, option discounting can be used.

Included in Bundle Price

The “Bundled” product option field, when selected, ignores all pricing methods and zeros out the Regular Price, Customer Price, Partner Price, and Net Prices. The product option shows “Included” in the List Unit Price column in the quote line editor.

Pricing Method Precedence

The “Bundled” checkbox field takes precedence if checked prices the option at $0. If “Bundled” is not selected, then block pricing and percent of total pricing take precedence over option pricing. Salesforce CPQ falls back on the pricebook price for the quote line’s list price if none of the pricing adjustments is used.

Use Case

An Angled Roof Mounting Kit, when sold in the Solar Hub bundle, costs $50, whereas when sold on its own costs $70. A sales rep has added the Solar Hub bundle to a quote, but the Angled Rood Mounting Kit shows $0 in the quote line List Unit Price. What could be the probable reason and how can the CPQ Specialist solve this?

Solution: Review “Bundled” on product Option 

Reason: The CPQ Specialist should review the “Bundled” checkbox on the product option “Angled Roof Mounting Kit” record. The “Bundled” checkbox field, if checked, takes precedence over option pricing and prices the option at $0.

Conclusion 

As we’ve navigated through the intricacies of bundle pricing and its implementation within Salesforce CPQ, it’s clear that mastering these strategies can significantly enhance your sales process and customer satisfaction. The blend of theoretical insights and practical applications, including overcoming multi-currency limitations and understanding pricing method precedence, equips you with the knowledge to make informed decisions and implement effective pricing strategies.

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