In our last article, we talked about Price Dimensions, Price Matrices and Price Rule Sets in Apttus and how they are used to solve real-world complex pricing requirements. In this article, we will deep dive into some more Pricing Basics and their real-world use cases.
Price Ramps are defined by Sales Users to distribute pricing over different time periods or quantities. Price Ramps are used mainly in Subscription based products and associated to Price List Item. They show time periods or quantities at which customer will purchase products/ services in
Suppose we are offering 2 subscription-based products for which licenses are required.
- For 1st product, if customer is
committing to purchase for 5 years then we are offering discounts as per below.
- For 1st year, product will be sold as per list price.
- For 2nd and 3rd year, product will be sold at 10% discounted rate on list price.
- For 4th and 5th year, product will be sold at 20% discounted rate on list price.
- For 2nd product, if customer is
committing to purchase 100 licenses then we are offering discounts as per
- For 1-50 licenses, product will be sold as per list price.
- For 51-75 licenses, product will be sold at 10% discounted rate on list price.
- For 76+ licenses, product will be sold at 20% discounted rate on list price.
1st product is the best example of creating Price Ramps based on time periods while 2nd product is the best example of creating Price Ramps based on quantities.
Conditional Charge Types
A product can have multiple charge types associated to it and can be applied conditionally to the proposal. Each charge type can have separate Price List Item record associated to it.
Suppose we are offering a subscription-based product, for which 3 charge types – License Fee, Services Fee, Training Fee and an attribute – Add-ons Required are associated to it. This attribute contains values Services and Training. Services Fee and Training Fee are conditional charge types and can only be associated to product if the same values are also selected in Add-ons Required attribute.
We will create 3 price list items – one for each charge type as per below.
|Sr#|| Price |
|Charge Type||Condition||List Price|
|1||Product License||License Fee||NA||$1000|
|2||Product Service||Services Fee||If Add-ons Required contains Services||$200|
|3||Product Training||Training Fee||If Add-ons Required contains Training||$100|
In Product Service Price List Item, we defined condition to include it only if Add-ons Required attribute contains Services value. In Product Training Price List Item, we defined condition to include it only if Add-ons Required attribute contains Training value. This way we can make use of charge types to drive conditional pricing based on attributes selection.
Min Price and Max Price
Sometimes, customers want to restrict prices on some products so that pricing of these products don’t increase above some point and can’t be priced below some point. This can be set using Min Price and Max Price fields at Price List Item level. Although Sales Users have flexibility to override these prices by providing manual adjustments in cart.
In this article, we covered very useful topics of Price Ramps, Conditional Charge Types and Min/ Max Price. In our next couple of articles, we will talk about other Pricing Basics in Apttus.