The 101 of Salesforce CPQ Price Rules: Key Concepts Explained

A general rule of thumb is that when you’re trying to sell something, you need to determine its price. For most situations, a fixed price per unit is sufficient.

However, many businesses want to be able to charge more sophisticated prices. The term sophisticated pricing may leave you wondering, what exactly does it entail?

Let’s understand with an example:

Imagine you have to sell Product X and Product Y but want to make sure that one Product X is included for every five Product Y. In this case, you will need to create a price rule that calculates the quantity of Product X based on the quantity of Product Y added to the quote.

Here’s another example:

You want to sell an item for a lower price if more than a certain number of units are purchased by your customer.

Now, answer this:

Can you manually calculate the price and prepare a quote for the above cases? Of course not, unless you are ‘Katherine Johnson’.

If this calculation is not easy to process by the average human brain, can you expect your sales rep to prepare quick and accurate quotes that incorporate the above-mentioned calculations?

Besides the scenarios we discussed around sophisticated pricing, there are many instances when sellers have to incorporate complex calculations and prepare pricing models depending on the nature of the product they are selling.

That’s when the CPQ system with its price rule emerges as a paladin for sales reps.

Smart Salesforce CPQ Price Rules: Sell Smarter and Faster

The power of Price Rules cannot be overstated. Admins can conditionally update almost any field on a quote line, quote line group, or quote record.

Rules for pricing follow an IF/THEN format. If something is true, then it takes action.

As part of the IF portion of the rule, lots of different data can be evaluated. You must be specific enough so that prices only change when you want them to.

In the THEN part of the rule, CPQ tells which fields to change and how to change them. Usually, this involves replacing the field value with a calculated value, but it can even be a simple static value.

Businesses use pricing rules to adjust and set prices based on a variety of determinants, factors, or limitations. Generally, pricing rules are the smallest unit within a more or less complex pricing logic.

Nevertheless, pricing tools are limited in their capacity and cannot meet every possible pricing requirement. Fortunately, Salesforce CPQ provides a way for complex pricing use cases that extend beyond out-of-the-box tools.

Salesforce has proved to be the cloak of levitation for market leaders who aim to transcend challenges and ascend the growth ladder. Its Price Rule feature offered by CPQ solution is one of its strongest assets, which the business community recognizes!

Let’s give you a brief rundown on applying the Price Rule in Salesforce CPQ.

How to Apply Price Rule in Salesforce CPQ

Now that you are familiar with the Price Rule, here’s how you can easily apply it:

You can target the configurator or the quote line editor’s calculator with price rules.

To apply the price rule to the calculator, you can set the Calculator Evaluation Event field:

1. Prior to calculation
2. Post calculation
3. During calculation
4. Or during any combination of the above three

The price rule can be applied to the configurator if you set the Configurator Evaluation Event field:

• During the saving process
• When the user edits the bundle or saves it, the price rule record contains Price Rules, Price Conditions, and Price Actions

Let’s understand the process with a use case: The number of Window Sensors will always be double that of Home Security Consoles.

1. Select the Price Rule tab
2. Set up a price condition
3. Set up a price action
4. Select the Object Manager and add the Quantity field to the Target Field of the Price Action
5. Set up a summary variable
6. Return to Price Action and link the summary variable
7. The quote line editor will appear

And, you are done!

The Bottom Line

You can use Salesforce CPQ Price Rules to apply special prices to products when they meet certain conditions based on their attributes, for example offering a discount when the customer has added products worth some amount to their cart.

For example, offering a discount of 10% after adding a product worth $850 from a particular brand.

Using this method, you can motivate your customers to complete their purchases and help you get better ROI.

Frequently Asked Questions (FAQs)

1. What are Salesforce CPQ Price Rules?
Salesforce CPQ Price Rules are advanced tools within Salesforce CPQ that help dynamically calculate product prices based on factors like quantity, product options, discounts, and more. With these price rules in Salesforce CPQ, businesses can create complex pricing scenarios, ensuring that every quote is accurate and reflects the correct pricing adjustments.

2. Why are Price Rules important in Salesforce CPQ?
Price rules in Salesforce CPQ are essential because they:

• Automate Pricing: By automating price calculations, these Salesforce CPQ Price Rules reduce manual errors and effort.
• Implement Complex Pricing Strategies: They support advanced pricing models such as tiered pricing and volume discounts.
• Ensure Accuracy: With precise configurations, these price rules guarantee the accuracy of prices in every quote.
• Increase Efficiency: The automation streamlines the quoting process, resulting in faster turnaround times.

3. How do I create a Price Rule in Salesforce CPQ?
To create a price rule in Salesforce CPQ, follow these steps:

• Go to Setup > App Setup > Customize > Quote Settings > Price Rules to access the Price Rules section.
• Click New to create a new Salesforce CPQ Price Rule.
• Specify the conditions, like product type or quantity, that will trigger the rule.
• Choose whether the price should be adjusted by a fixed amount, percentage, or formula.
• Once configured, save your price rule in Salesforce CPQ to activate it.

4. How can I optimize Price Rules for performance?
To optimize the performance of Salesforce CPQ Price Rules, keep these tips in mind:

• Limit Rule Complexity: Avoid overly complex rules to ensure optimal performance.
• Use Specific Criteria: Target specific products or configurations to reduce the number of price rules in Salesforce CPQ evaluated.
• Index Important Fields: Index the fields used in rule criteria to enhance query performance.
• Test Thoroughly: Always test your price rules in various scenarios to pinpoint any performance issues.
• Consider Rule Order: The order of price rules in Salesforce CPQ can influence final price calculations, so experiment with different rule sequences for the best results.

5. Can you use custom fields in Price Rules?
Yes, custom fields can be used within Salesforce CPQ Price Rules, allowing you to design more tailored and complex pricing scenarios. This capability helps create pricing models that align more closely with your business needs.

6. How can you handle multiple Price Rules that apply to a single product?
In Salesforce CPQ, multiple Price Rules in Salesforce CPQ can apply to a single product, and they are processed in the order they are defined. You can adjust the sequence of these rules to ensure the right price rule is applied based on your business requirements.

7. Can you use formulas in Price Rules?
Absolutely! You can incorporate formulas into Salesforce CPQ Price Rules to create dynamic and flexible pricing based on various conditions and factors. This ensures that your pricing adapts to specific needs and situations.

8. How do I troubleshoot Price Rule issues?
To troubleshoot issues with Price Rules in Salesforce CPQ, you can use the Debug Logs feature to analyze rule execution and identify any errors or unexpected behavior. This allows you to resolve any issues with your Salesforce CPQ Price Rules efficiently.