Are you looking to optimize your customer prices by providing discounts? Salesforce CPQ allows you to do just that with its Discount Schedule feature. The article offers overview of the Salesforce CPQ discount schedule and how it can help increase your sales. Learn all you need to know about this powerful tool right here!
Discounting in Sales Process
When a sales professional generates a quote, it’s almost certain they’ll want to apply discounts to at least a couple of products. After all, they’re attempting to strike a deal. Salesforce CPQ typically offers effortless discounting.
For instance, your organization can offer discount to the clients who acquire large volumes of goods with a volume-based discount to drive larger sales. Salesforce CPQ can automatically apply them, saving sales reps from going through excel sheets / tables of outdated pricing data. It also maintains track of various discounts, such as partner / distributor discounts, to guarantee no loss of pricing information.
Salesforce CPQ Discount Schedules
Salesforce CPQ Discount Schedules focus on offering discounts to your customers. Moreover, they are essential part of any Salesforce CPQ implementation. Using them, you can offer discounts based on order quantity, product type, customer / partner / distributor. In addition, you can provide reasons for your customers to purchase more.
The advantage of discount schedule is that it is easy to set up and use. You must specify the minimum order quantity required to qualify for the discount and the percentage discount that will be applied.
Generally, it works on the total volume of products being ordered. The larger the quantity ordered, the greater the discount.
Types of Discount Schedules
Discount schedules are important as they help configure products, price them correctly, and apply correct discount to each opportunity. There are various types of discount schedules in Salesforce CPQ:
a) Slab Discount
Here, application of the slab discount goes progressively through each layer, which implies that it travels slab by slab and adds the progressive discount to each tier.
b) Range Discount
Here, the discount is applied to all units based on the correct tier.
Mapping of Discount Schedule
Salesforce CPQ has capabilities where user can map discount schedule at various levels of Products. For example, you could specify a Discount Schedule at Master Product Level, Product Feature Level and Production Option Level.
Here, users have the power to apply discount schedule at the product feature level.
Product Feature Level
Here, users have the power to apply discount schedule at the product feature level. Examples of product feature: Processor, Memory and Storage.
Product Option Level
Using Salesforce CPQ, it is possible to apply discount schedule at the product option level such as child product or bundled product.
Benefits of Using Discount Schedules
Salesforce CPQ discount schedule provides many benefits for businesses, including the ability to offer discounts to customers. Discount schedules help companies manage these discounts and make sure that they are applied correctly.
The utilization of the discount schedules must be such to offer a variety of discounts, like:
- Volume discounts
- Early Payment Discounts (EPDs)
- Cross Product Discounting
- Cross Order Discounting
- Discount Schedule with Block Pricing
- Term Discount Schedule
- Cost Schedule Discount
Discount schedules help ensure that discounts are applied correctly and steadily. It can save businesses time and money and prevent customer frustration.
Further, they also permit businesses to track the impact of discounts on their bottom line. Afterwards, they can utilize the given data to make informed decisions about pricing and discount strategies.
Strategies for Managing Discounts within Salesforce CPQ
Salesforce CPQ provides discount management capabilities that allow you to configure and manage discounts for your products and services. Two discount strategies are common within Salesforce CPQ: standard Discounts and Price Rules.
Standard discounts can be created for a specific product or service and applied to one or more price list items. On the other hand, price rules are more flexible and can be used to create complex discounting scenarios. Price rules can be based on criteria such as product type, quantity, price, date range, customer location, and more.
When configuring discounts within Salesforce CPQ, there are a few things to keep in mind:
- Deals can be set up as either a percentage or a fixed amount.
- Discounts can be applied to the base price of a product or service or the total price after other charges have been added (such as shipping or taxes).
- Discounts can be cumulative or non-cumulative. Cumulative discounts are applied on top of other discounts that have been applied. Non-cumulative discounts replace any additional discount that has been used.
- Discounts can be automatically applied when certain conditions are met, or a sales representative can manually use them.
Best Practices for Implementing a Discount Schedule in Salesforce
Salesforce CPQ Discount Schedules are a great way to automate customer discounts. When setting up a Discount Schedule, one must keep in mind some finest techniques:
1. Set up tiered discounts based on quantity. So, your most loyal customers receive the biggest discounts.
2. Use percentage-based discounts whenever possible. Hence, the application of the discount is made correctly.
3. Focus on applying the correct discount to the appropriate products and services. You want to avoid accidentally giving a discount on an item already on sale!
4. Use Salesforce’s “Advanced Settings” options when creating your Discount Schedule. It permits you to specify exactly how the discount should be applied (e.g., after taxes, shipping, etc.).
5. Test, test, test! Be sure to test your Discount Schedule before rolling it out to your entire customer base. Testing can go a long way in ensuring that everything works as intended.
Hence, knowing the basics of Salesforce CPQ discount schedules is crucial for effective quoting and order management processes. Companies can generate more revenue and reduce time spent managing complex pricing models by having an inclusive understanding of how these discounts can be used to create stronger customer relationships. From offering industry-leading price optimization solutions to streamlining sales processes with every step, Salesforce CPQ brings businesses one step closer to their ideal evaluation process.