CPQ – Discounts

Discounts

• Basic discount – offer with discount on some products
• Volume discount – Volume based discount to encourage larger sales – CPQ automation possible
• Partner discount
• Distributor discount
• CPQ simplifies or automates discount processes

Apply prices manually or automatically

• CPQ – price adjustment and discount tracking – multiple price fields present in quote item
  • each field represents certain changes

• Price waterfall – prices cascade down – example
  • special price – quantity discount = regular price
  • regular price – manual discount = customer price
  • etc.

Discounts for packages – bundles

Example

• 10% discount on a product, but only in a bundle.

• App Launcher – Salesforce CPQ
• Products
• ListView – All Products
• Select Bundle
• Related Tab
• Select Product Option
• Edit
• Discount (%) = enter corresponding value
• Save

Create or select appropriate quote and test!

Quantity discounts – Discount plan – Range type

Example

• 0 to 29 no discount
• 30 to 60 = 10% discount
• 60 to 90 = 20% discount
• from 90 = 30% discount
• ATTENTION: The upper quantity is not included in each case, so there are no gaps.

Create and apply discount plans

Example: 10% discount on more 100 and 20% on more than 200 pieces.

• Tab Discount Schedules
• New
• Set name
• Save
• Edit Tiers

• click + – icon
• Create another tier level

• in the last level no „Upper Bound“ is necessary, because everything from 200 gets the discount
• Save

• Products
• Select All Products ListView
• Select the corresponding product
• Edit
• Discount Schedule – select the previously created discount schedule
• Save

Create or select appropriate quote and test!

• Discount plans are not specific to one product
• can be applied additionally from other products

• several discount plans can be assigned to different objects
• but only plan can be used per offer item
• CPQ selects object with highest priority

Restrict discount plans via Pricebook

Exclude Pricebooks

• Discount Schedule
• Open discount schedule
• in the field „Excluded Pricebook IDs“ enter the IDs of the pricebooks to be excluded, separated by commas
  • the discount schedule will no longer be applied to these pricebooks

Apply to Product and Pricebook only (rare)

• are on the discount plan „Product“ and „Price Book“ indicate
  • plan is applied only on it
• rarely used, because very restrictive
• ATTENTION: overrides lookup „<strong>Discount Schedule</strong>“ on Product

Aggregation

Aggregation scope

• Determines how multiple offer document items with the same discount schedule are affected
• 3 options
  • None – quotation items are treated independently of each other
  • Quote – Aggregates the quantities of the quote items in the entire quote
  • Group – Aggregates the quantity of quote items in the same group
• Optionally marked offer items are not taken into account

Aggregation scope with Bundles

• if the discount plan is defined at the Product option, then
  • only products from bundle will be considered
  • Tip: For all of them, the discount plan must be defined at the Product option
• Free bundle products are normally not included
  • with „Include Bundled Quantities“ you can include them again

Cross-product aggregation

• only possible with the same discount plan
• Activate Cross Products

Aggregation across orders

• Past purchases can also be taken into account for discounts
• Activate Cross Order

Schedule

• the past purchases to be taken into account can be limited in time
• Example:
  • Only purchases made in the last 365 days
  • Formula check on object asset becomes TRUE if purchase date is not longer than 365 days ago

• Setup
• Object Manager
• Asset
• Fields & Relationships
• New
• Formula
• Enter Label (=Purchased This Year)
• Checkbox
• Next

• Enter „TODAY() – PurchaseDate < 365“ in the formula field.

• Next
• Next
• Save

Answer-Key

• Answer to the question:
  • Which value of „Purchased this Year“ should be included in the aggregation?
• Here to need a text field with the same name on the quote, but which always returns „true

• Setup
• Object Manager
• Asset
• Fields & Relationships
• New
• Formula
• Enter Label (=Purchased This Year)
• Text
• Next

• Specify „true“ in the formula field

• Next
• Next
• Save

Contraint Field – Restriction on the discount plan

• the answer key must now still be defined for filtering the assets on the discount plan

• Setup
• Object Manager
• Fields & Realtionships
• Contraint Field
• Add new value to the list – New
• Specify API name of the relevant field (=Purchased_This_Year__c)
• Save

Now still select in the discount plan!

• Tab Discount Schedule
• Select discount schedule (=Bulk key)
• Edit
• Cross Orders
• Select Contraint Field accordingly (=Purchased_This_Year__c )
• Save

Perform a test with the appropriate quota!

Discount – Fixed amount

• Tab Discount Schedule
• Select discount schedule (=Bulk key)
• Edit
• Select Discount Unit – Amount
• Now the discount is displayed in the tiers for the currency
  • In case of a multi-currency org, tiers are required for each currency.

Sales employee – change discount scale for offer

• Tab Discount Schedule
• Select discount schedule (=Bulk key)
• Edit
• Override Behavior – select accordingly
  • –None–: no chaanges possible
  • All: upper and lower limits as well as percentage or amount changeable – full control
  • Current Tier only: Percentage or amount changeable based on current tier. Upper and lower limits have no influence.

Discount plan – Slab type

• Type – Select „Slab“

• Tiers are divided into blocks and the discount is appled block by block

Price for 250 pieces = (99 * Price) + (100 * Price * 0,9) + (51 * Price * 0,8)

• TIP: this discount type can not be applied with cross products

Compound discount

• Grant quantity discount without defining discount plan
• Mathematical formula for calculation: 1/(Quantity^(Compound Discount/100))
• Discount increases exponentially with quantity

Quote-Discount

• Discount can also be used directly at the quote line against

• the regular price is always used for charging
• by activating the checkbox „Non Discountable“ at product this can be deactivated

Customize discount units

• Setup
• Object Manager
• Quote Line
• Fields & Relationships
• New
• Picklist
• Next
• Enter Label and Name (z.B.: AdditionalDiscountUnit)
• Enter Values
  • Percent
  • Amount
  • Unit Override
  • Total Override
• Next
• Next
• Save

Standard discount on offer

• actually no possibility to give a discount on entire offer
• but with field „Additional Disc“ as possibility if items are not discounted individually
  • acts as a standard and fallback discount percentage
  • discounts on offer item level have higher priority than group discount

• if a product is marked as „Non Discountable“, no discounts will be considered

Package – Discount

• Each bundle – „Discounted by Package“ checkbox
  • Additional Discount“ field at the option (Quote) unchecked
  • gets the discount from the main product (click „Calculate“)
• works only with discount type „Percentage

Channel discounts

• Partner and distributor discounts are simple percentage fields
• can be defined manually or by price rule
• Partner Price Calculation
  • Customer Price - Partner Discount = Partner Price
• Calculation Distributor Price
  • Partner Price - Distributor Discount = Net Price
• Partner Discount“ and „Distributor Discount“ fields available on quotation level

• Deactivate partner discount – activate checkbox „Non Partner Discountable“ on product

Use list price for channel discount

• Standard – the partner discount (%) is determined with the customer price and the amount is also charged with the customer price.
• With additional field at quote „ChannelDiscountsOffList__c “ and value 1
  • the partner discount (%) is determined with list price and also charged with customer price
  • it can be switched with 1 and 0

Consider partner discount as 1.

• Normally taken into account after all other discounts
• However, some companies want to apply partner discount first
• Create additional field „ApplyPartnerDiscountFirst__c„
  • 0 = default – partner discount last
  • 1 = Partner discount first

Note: ApplyPartnerDiscountFirst__c and ChannelDiscountsOffList__c fields should not be together in the same offer. Errors will occur.

Customer price in last place – additional discounts

• Moving the customer price within the price waterfall creates additional discounts

Price-Waterfall - Discount

• Manual discounts are applied to the respective position
  1. Net Price - Additional Discount = Customer Price
  2. Regular Price - Partner Discount = Partner Price
• other additional field to control – „ApplyAdditionalDiscountLast__c „
  • 0 = Before
  • 1 = After

Notes:

• ApplyPartnerDiscountFirst__c has priority over ApplyAdditionalDiscountLast__c
• Do not use ApplyAdditionalDiscountLast__c together with ChannelDiscountsOffList__c