The Salesforce CPQ Business Analyst: ABC Cars Plc Enhances Pricing Management with Salesforce CPQ

Scenario: ABC Cars Plc is a prominent Ford dealership in Calgary, Canada, with a significant business relationship with the Calgary Police, their largest customer. The Calgary Police's annual purchases amount to $3 million, constituting 23% of ABC's total annual revenue.

To remain competitive and improve pricing accuracy, ABC has negotiated contracted pricing with several key customers, offering a 12% discount relative to other customers. However, the sales team often struggled to remember these special prices when configuring quotes for the respective customers, leading to errors, delays, and customer dissatisfaction.

Additionally, ABC Cars has introduced a new Satellite FM radio subscription product priced at $100 per month when purchased as a standalone product. However, if customers choose to select the Satellite FM subscription as an upgrade option during a new vehicle purchase, the Satellite FM product price is discounted by 50%.

Sales representatives faced challenges in manually updating prices for these bundles, causing stress, delays, and pricing errors.

To address these issues, ABC Cars recently implemented Salesforce CPQ to leverage the contracted pricing and option pricing features.

Solution with Salesforce CPQ:

1. Contracted Pricing for the Calgary Police:

• Configuration: In Salesforce CPQ, ABC Cars sets up Contracted Pricing to manage their long-term agreements with key customers, including the Calgary Police.

• Contract Records: A contract record is created for the Calgary Police, specifying pricing terms, start and end dates, and any other unique contract conditions.

• Price Books: ABC associates the appropriate Price Books with the contract, containing the negotiated pricing for the products or services covered by the contract.

• Automated Pricing: When the sales team creates quotes or orders for the Calgary Police, Salesforce CPQ automatically applies the contracted pricing, eliminating manual calculations and pricing errors.

• Real-time Updates: Any changes to the contract, such as renewals or amendments, are seamlessly managed within Salesforce CPQ, ensuring that pricing remains accurate and up-to-date.

2. Option Pricing for Satellite FM Radio Subscriptions:

• Configuration: To manage the Satellite FM radio subscription product, ABC Cars utilizes Salesforce CPQ's Option Pricing functionality.

• Product Rules: Product Rules are established to automatically apply a 50% discount on the Satellite FM radio subscription when it is bundled with a new vehicle purchase.

• Sales Process Streamlining: When sales representatives configure quotes or orders for customers who choose to bundle the satellite FM product with a new vehicle, Salesforce CPQ automatically calculates the discounted price.

• Pricing Accuracy: This automation reduces errors, streamlines the sales process, and enhances customer satisfaction.

Outcome: By implementing Salesforce CPQ with Contracted Pricing and Option Pricing functionalities, ABC Cars Plc has effectively addressed the challenges they faced:

1. Contracted Pricing ensures that the Calgary Police receives the negotiated prices without manual calculations, leading to pricing accuracy and maintaining a strong customer relationship.

2. Option Pricing for the Satellite FM radio subscription simplifies the sales process, reduces errors, and ensures that customers receive the correct bundled pricing. This leads to improved efficiency and customer satisfaction, ultimately enhancing the dealership's competitive edge in the market.