Salesforce CPQ (Configure, Price, Quote) has a range of really helpful features that integrate perfectly within Salesforce, allowing you to create detailed quotes to close business faster. Sometimes a basic one off quote is all you need, but if you’re looking for more advanced Salesforce quoting, including discounts and more, CPQ has you covered. Discount schedules are a great native object in CPQ that allows users to provide an automated discount dependent on how many product units are sold.
Take a look at the video or step-by-step instructions below to see how you can easily create your own discount schedules:
- Once in your CPQ Salesforce section, head to the ‘Discount Schedules’ tab in the navigation bar. From here select the ‘New’ button on the right hand side to bring up the New Discount Schedule popup.
- Once in the popup window you are asked to fill in several mandatory fields and potential for optional fields dependent on preference and relevance. The first field you must complete is the ‘Schedule Name’. For best practice it is advised to use a name that is related to the product you would like to create a discount for, such as ‘HDMI Discount’ when discounting HDMI cables. This is to make it easier to locate it again later.
- The fields that follow all provide options for you to select from. The first is ‘Type’. This refers to how the discount percentages will be subtracted from the price, either by ‘Range’ or ‘Slab’. You are then able to select your ‘Discount Unit’ to determine whether you would like to apply a ‘Percentage’, ‘Amount’ or ‘Price’ as your quote discount. Following on to the ‘Aggregation Scope’ section, which asks you to select if you would like to aggregate on a quote ‘Group’ or the entire ‘Quote’ itself.
- Once you have determined the discount basis you are then asked to select the ‘Product’ you wish to apply the discount to. Simply select a product from the list or search for the name. Once you have selected your product you can either fill in other optional fields or click the save button at the bottom right of the popup when you are satisfied.
- Once you have saved your discount schedules, the popup will disappear and take you to the new record you will have created. When in the record, head to the dropdown arrow on the top right hand side and select ‘Edit Tiers’ from the list that appears.
- When in the Edit Tiers window, you are given 4 options to create your discounts. Under ‘Tier Name’ you are able to specify the quantity of products you wish to set a discount for, such as ‘1-5’ meaning when customers purchase between 1-5 of the same product they will receive the following or no discount. If you require 5 or less items purchased to have no discount you would then carry on to the ‘Lower Bound’ section and put 1 in the box as this refers to the minimum number of products purchasable. The next is the ‘Upper Bound’ which refers to what the maximum purchased for the discount should be less than, for 1-5 units this box would read 6 to ensure 5 and below are covered. Finally the ‘Discount (%)’ section for a non discounted sector would require a 0 in the box.
- Once you have decided your product quantities without a discount, you can then add another tier which would provide a reduction. To do this, select the plus icon on the right hand side next to the tier you have already created to bring up a new line. Following the same steps as the previous tier you can then input your new ‘Tier Name’, for example this time you may want to call it ‘6-10’. The ‘Lower Bound’ for this example would be 6 and the ‘Upper Bound’ 11. This time the ‘Discount (%)’ section will have a value other than 0, for example if you wanted to give anyone who purchased 6-10 of your products a discount of 25%, simply type ‘25’ in the box.
- For discounts on items above a certain amount without a cut off point, for example a 50% discount on 11+ products purchased, follow the same steps as previous, starting with selecting the ‘+’ button on the right hand side of the tier. Name your tier in the same style as before with ‘Tier Name’ being ‘11+’, and the ‘Lower Tier’ also ‘11’. This time however, the ‘Upper Tier’ section will stay empty as there is no max value. Following on to ‘Discount (%)’, simply insert ‘50’ for your 50% off discount tier. One you are happy with all your tiers, select the ‘Save’ button in the middle of the screen to finalise your discounts.
- Once saved, you will be taken back into the ‘Discount Schedules’ section where you can select the ‘Products’ tab from the navigation bar to attach the discount schedule to the relevant product. From the list that appears, select the product name you are wanting to associate the discount schedule to.
- In the product record screen for your chosen product, navigate to the drop down arrow at the top right and select ‘Edit’. In the popup that appears scroll down to the ‘Pricing’ section and select the ‘Discount Schedule’ action box. If you have multiple schedules you may need to use the search bar to find the one you need, or alternatively it may appear as a suggestion straight away. When you have chosen the discount schedule, simply click the ‘Save’ button at the bottom of the popup.
- To check your discount schedule is saved correctly, select the ‘Quotes’ dropdown from the navigation bar and choose a quote from the list. Once in the quote screen select the dropdown arrow on the right hand side and click ‘Edit Lines’.
- Head to the ‘Add Products’ button and either scroll down or use the search bar to find the product you have been setting a discount for. Simply tick the box next to the product name and click the ‘Select’ button at the top right.
- Once in the quote information, depending on the quantity of the products inputted the ‘Net Unit Price’ will change. For example, using the discount amounts set up earlier, when the ‘Quantity’ section is set to 1, the ‘Net Unit Price’ will be the standard undiscounted price of £22.99. However when 6 is inputted in the ‘Quality’ section the ‘Net Unit Price’ will decrease to £17.24, due to the 25% reduction created earlier. In the same way, if 11 is inputted into the ‘Quantity’ section, the ‘Net Unit Price’ will decrease to £11.49, due to the 50% reduction tier set up previous. Once you have decided the quantity needed, simply click the ‘Save’ button in the top right and your discount schedule is complete.
CPQ discounting allows for more precise and faster quoting, meaning fewer mistakes and less time required to produce detailed quotes. Find out how to fully utilise the Quotes section of CPQ or take a step back and see how accurately defining criteria in the Configure stage can really enhance the process. If you’re new to CPQ find out all you need to know here or get in touch with our experienced team today.