Book Image

The Salesforce CPQ Implementation Handbook

By : Madhu Ramanujan
Book Image

The Salesforce CPQ Implementation Handbook

By: Madhu Ramanujan

Overview of this book

Salesforce CPQ is innovative software that enables you create better quotes, improve quoting accuracy, and maximize sales and deals. It also provides a quick analysis of profits and losses, helping you improve the overall execution of sales processes, and allows a great deal of flexibility for your prospects, customers, and business partners. The book starts with the Quote-2-Cash business process in Salesforce and shows you how to assess when a business needs to implement CPQ. You’ll then progress to configuring opportunities, quotes, and CPQ products. As you advance, you’ll understand how to define and configure price books, price rules for CPQ quote automation, multidimensional quoting, and more. Next, you'll look at how to configure CPQ guided selling and create package configurations, contracts, and amendments. Later chapters will demonstrate how to perform data migration from a legacy system and the order in which the objects are to be migrated. You’ll also explore CPQ billing and its advantages with the help of different use cases before learning about Industries CPQ and how it is different from standard Salesforce CPQ. Finally, you’ll discover best practices for achieving optimal CPQ performance and avoiding performance bottlenecks. By the end of this Salesforce book, you’ll be able to implement Salesforce CPQ for any business.
Table of Contents (17 chapters)
Section 1: Getting Started with Salesforce CPQ Implementation
Section 2: The Next Stage of the CPQ Journey
Section 3: Advancing with Salesforce CPQ

Understanding the pricing structure

This pricing structure describes how Salesforce CPQ applies different prices and discounts to calculate the net price from a list price. The prices defined in each box, such as the original price, list price, and so on, are out-of-the-box features provided by CPQ. This model follows the top-down approach for calculating prices and is also called the price waterfall.

Figure 4.13 – CPQ price waterfall

As shown in the preceding figure, let's learn what each of these prices refers to:

  1. Original Price: A copy of the price of a product from the price book.
  2. List Price: This is also a copy of the price, but it can be updated with a price rule or other automation.
  3. Special Price: This is used for specific situations. The contracted pricing approach described earlier can be used to set a special price. Special prices can also be used in price rules.
  4. System Discount: When someone purchases a bulk quantity...