In our last article, we talked about Constraint Rules and how they are used to present right products to Customers. In this article, we will talk about different Pricing Methods available in Apttus to handle complex pricing requirements of our Customers.

Apttus uses combinations of Price Dimensions, Price Matrices and Price Rule Sets to apply automatic pricing adjustments to specific products or to group of products which are either under same price list, product group or product family.

Let’s understand this by below 2 use cases.

  • We have Internet Plan product, which can be offered for 1 month, 3 months, 6 months and 12 months Subscription Terms and we want to give discount of 0%, 5%, 12%, 20% respectively.
  • We have Small, Medium and Large Size Customers and we want to give discount of 2%, 5% and 10% on all products respectively.

Now let’s go through each Apttus specific term and relate above use cases.

Price Dimensions

            To work with either Price Matrices or Price Rule Sets, we need to create Price Dimensions. Price Dimensions are nothing but Salesforce fields which are used in Pricing objects. Price Dimensions are the fields which drive pricing adjustments. Any field which is being used in either Price Matrices or Price Rule Sets for pricing adjustments should have relevant record created in Price Dimension object.

In our 1st use case, Internet Plan Discount % depends upon Subscription Terms, so we need to create a Price Dimension for Subscription Terms. In our 2nd use case, Customer Size determines Discount %, so we need to create a Price Dimension for Customer Size.

Price Matrices

            Price Matrices define the complex pricing structure with the combinations of up to six Price Dimensions. They define Adjustment Type and Adjustment Amount values based upon specific values of Price Dimensions. We can set Dimensions to either Discrete or Range. Price Matrices are created on the Price List Item record and can only affect pricing of that specific product.

            Our 1st use case can be achieved by creating Price Matrices on Price List Item of Internet Plan Product. We can select Subscription Term Price Dimension and set it as Discrete. Then we can provide Price Matrix Entries as per below.

Sequence Subscription Term Adjustment Type
Adjustment Amount
1 1 % Discount 0
2 3 % Discount 5
3 6 % Discount 12
4 12 % Discount 20

            After setting up Price Matrix for Internet Plan Product, when this product will be added into cart for some specific Subscription term, pricing adjustment will be applied automatically based on above Price Matrix Entry.

Price Rule Sets

            When we want to apply automatic pricing adjustments on multiple products based on Customer Size, Customer Segment, Customer Rating, Distance, Volume etc. then Price Rule Sets are used. Price Rule Sets can be applied on Price List, Product Group, Product Family, Category etc. while Price Matrices can only be applied on Price List Items. This way, Price Rule Sets affect pricing of large group of products. In terms of creation, they also contain Price Rule Set Entries same as Price Matrix Entries.

            Our 2nd use case can be achieved by creating Price Rule Sets on Price List. We can select Customer Size Price Dimension and set it as Discrete. Then we can provide Price Rule Set Entries as per below.

Sequence Customer Size Adjustment
Type
Adjustment
Amount
1 Small % Discount 2
2 Medium % Discount 5
3 Large % Discount 10

After setting up Price Rule Set for Price List, when any product from this Price List will be added into cart, pricing adjustment will be applied automatically based on above Price Rule Set Entry depending upon Customer Size.

Till now we have learnt about Price Dimensions, Price Matrices and Price Rule Sets which are very important terms to handle real world complex pricing scenarios.