Understand Product and Price Rules

Learning Objectives

After completing this unit, you’ll be able to:

  • Define the four varieties of product rules.
  • Describe the difference between product rules and price rules.
  • Pitch the value of increasing accuracy in the sales cycle.
  • Articulate the importance of selling value versus product.

Product Rules

CPQ product rules help ensure sales reps are putting together the right products and bundles every single time. You don’t have to worry about checking whether products and options are compatible with one another, or whether a specific SKU is appropriate for your customer’s business size and use case. We do that busy work so you can move quickly to deliver on the high expectations your customers hold for their buying experience. Increasing accuracy and customer satisfaction at the same time? That's a win-win situation if we ever saw one.

The configurator automatically bundles products as necessary and prevents incompatible products from being selected.

Learning how different product rules function can help you understand how you can transform the way you go to market—everything from how you’re putting together SKUs or packaging products and prices to how your reps sell.

There are four kinds of product rules: validation rules, configuration rules, filter rules, and alert rules.

Validation Rules

Check quote line items and verify that there are no invalid products.
Configuration Rules

Check the product and its components to prevent invalid product combinations from being selected on a product bundle.
Filter Rules

Prefilter the products that are available to add to a bundle.
Alert Rules

Guide and inform through messages during configuration or pricing.

You can combine these product rules to improve the selling experience while increasing quote accuracy. 

Price Rules

In addition to product rules, Salesforce CPQ price rules help control quoting and optimize sales. You can create tiered discount schedules based on volume (for example, automatically apply X percent discount if the quantity equals or is greater than Y) and term pricing can be applied automatically. You can also set product discounts or thresholds for individual line items based on margins or promotions. CPQ delivers real-time feedback on pricing as it's entered. Reps will always know when they'll need to get discounts approved and by whom.

You can be thinking, That's all fine and good, but what if I want to apply different quantities and discounts over time, such as with a subscription?

We got you! With multi-dimensional quoting (MDQ), you can declaratively set up these line items with blocks of time (for example, days, months, years, and so on) with quantity and discounts separate from one another. You can control quantity and discounts over time without having to add new line items.

Multi-dimensional quoting supports ramps over declared periods of time.

Delivering Value to the Customer

Getting a quote to your customer in record time? Check! Ensuring you hit the right price? Check!

Speed and accuracy are essential in the sales cycle. Reps are more productive and customers appreciate the rapid service. But dig deeper. With dynamic product and pricing rules, what you're really able to deliver is accurate value.

Reps can become trusted advisors when they reflect the right market value of products and services, as well as the market value of working with a company whose people take the time to listen, respond thoughtfully, and recommend long-term solutions to critical problems. Combining the right tools with the right processes, you elevate the conversation from products and price to how your customers benefit in the long run when they do business with you.