Salesforce CPQ: Custom Pricing Method

In the dynamic world of sales, pricing can often be a game-changer. With Salesforce CPQ at your disposal, you gain an edge with features that offer unparalleled pricing flexibility. One such feature, the 'Custom Pricing Method,' stands out. 

When you mark a product as having an editable pricing method, it unlocks the 'Custom Pricing Method.' This doesn't just grant the sales representative the authority to manually adjust the Customer Unit Price. Rather, it empowers them to override almost every other pricing tool or discounting technique featured in Salesforce CPQ.

But, with great power comes great responsibility – and potentially, great risks. Handing sales reps the capability to choose the Custom Pricing Method can drastically alter the intended price point. This is precisely why it's essential to approach this feature with caution. Consider incorporating validation rules or approval mechanisms to monitor and regulate any significant pricing alterations.

Note that when the pricing method is set to 'Custom,' the field for additional discount turns non-editable. This essentially means that any pre-existing discount becomes inconsequential. In other words, it's as if the discount never existed in the first place!

If you decide to revert the pricing method back to 'List' from 'Custom,' you'll notice something intriguing. The Customer Unit Price undergoes a reset, and it once again acknowledges the value in the additional discount field.

However, if you still need to apply percentage-based discounts even after using the 'Custom' pricing method, there's a workaround. Salesforce CPQ allows you to tap into other discounting fields further down the pricing waterfall after the Customer Unit Price. Fields like 'Partner Discount' or  'Distributor Discount' can be leveraged to introduce price reductions, even when the Additional Discount becomes inaccessible.

Salesforce CPQ is a powerful tool designed to bolster sales processes with intricate pricing functionalities. While the Custom Pricing Method offers flexibility, it's vital to understand its implications fully. By being aware of the intricacies and potential pitfalls, businesses can ensure that they maintain pricing integrity while giving their sales teams the tools they need to succeed.