Setup and Manage Pricebooks in CPQ in Salesforce

Navigating the world of Salesforce Price Books can significantly enhance how your business manages its product pricing strategies. This blog offers a comprehensive overview designed to streamline your understanding and application of price books within Salesforce. By delving into this guide, you will discover:

• The distinctions between Standard and Custom Price Books, enabling you to efficiently organize product listings and pricing.
• An insight into Price Book Entries, detailing how products are priced within these books.
• Key fields within Price Book Entries, clarifying the critical information needed for effective price book management.
• Strategies for creating and maintaining Custom Price Books, tailored to meet the diverse needs of your market segments or regions.
• Guidelines for sharing Price Books, ensuring the right team members have access to the pricing information they need.

Manage Price Books

Types of Price Books

A price book lists products and their prices offered by a company to its customers. There are two types of price books.

• • Standard Price Book: This is the master list of all the products and services with their default prices. A standard price book is created when you start creating product records. It includes standard prices of all the products regardless of any custom price book that is created with those products.
  • Custom Price Book: This is a separate list of products and services with their custom prices, called “List Prices”. These are ideal for offering products at different prices to your customer in different market segments, regions, etc. A separate price book can be created to meet the pricing requirement of a different set of customers. For example, a custom price book for partners and a custom price book for direct sales end customers.

Price Book Entries

A product with its price as listed in a price book is called a “Price Book Entry”. A currency for the price can be specified for each price book entry.

• Standard Price Book Entries: When a product record is created, a standard price book entry is created by Salesforce. The default (standard) prices for the products and services in the standard price book are called standard price book entries.
• Custom Price Book Entries: Only the products with active standard price book entries can have custom price book entries associated with their records. The custom (list) prices for the products and services in the custom price books are called custom price book entries.

Key Fields

• Active: Specify whether the price book entry is active and can be added to an opportunity or quote.
• Currency: Specify the currency to use for the price book entry. This field is only available in multi-currency org.
• List Price: Specify the price of the product in the price book.
• Price Book: The price book that contains this product-price entry.
• Product: The name of the product.
• Standard Price: The derived standard price for the product.
• Use Standard Price: Specify whether the price book entry inherits its price from the standard price book.

Custom Price Book

A custom price book can be created for each market segment or region your sales reps sell to. Different prices associated with the products can be added to the respective price books. For example, there is a custom price book for the non-profit industry and a custom price book for the profit-making industry.

Create Custom Price Books

• Click “New” on the Price Books page.
• Add a name for the price book.
• Enter a description for your price book.
• To allow sales reps to begin adding the price book or its entries to opportunities or quotes, select the “Active” checkbox.
• Add new price book entries or populate with price book entries from another price book.

Creating and Maintaining Price Books Considerations

• Click “Clone” on the price book page to create a custom price book by cloning an existing price book.
• Products can be deleted from the custom price book without affecting the original product listing or its entries in other price books.
• The product is still available and active when deleted from the standard price book, but its standard price is deleted and removed from all custom price books.
• Products, quote line items, or order products can only be added from a single price book.
• To add a product to an opportunity, quote, or order, choose a price book that contains the price book entry for that product.

Sharing Price Books Guidelines

• Click “Sharing” on the price book detail page to view and manage sharing details.
• Click “Add” to grant access to the record for other users, groups, roles, or territories.
• Click “Edit” or “Del” next to an item in the list to edit or delete the access level for the existing manual sharing rules.

Conclusion

In conclusion, mastering Salesforce Price Books is key to unlocking advanced pricing strategies that cater to diverse customer needs. Whether you’re setting up your product listings for the first time or looking to refine your pricing approach for different market segments, understanding the nuances of Standard and Custom Price Books, along with their entries and management, is essential.

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