In the previous blogs, we have applied block prices to the product Lunchbox in **Salesforce CPQ**. Tango foods is offering COVID slab discounts with set prices for fixed quantities on the bundled **Lunchbox product** along with cost based prices for other products and here are the rules for their application.

**Rule No 1: This is again a very special discount valid indefinitely due to Covid**:

- Lunchbox’s list price is $15. If 20-30 lunchboxes are ordered then the price is 275, if 30-40 lunchboxes are ordered then the price is 400. An 10% additional discount is applicable for 41-50 units, 15% for 51-60 units. Because there is limited capacity to carry boxes by each transportation agent, Tango foods has decided to charge a per unit price of $18 above 40 units ordered by each customer. They also want to streamline the discounts and make it a slab discount structure based on the discount rates provided above.

**Solution**: This is simultaneous application of block pricing with an overage rate and a slab discount scenario. A **slab discount schedule and pricing **blocks are created. Discount schedule is applied to the product. The **product pricing method **is changed to Block.

**Let’s see what the price is which Salesforce calculates if 45 units are ordered.**

- $400 upto 40 boxes.
- For additional 5 boxes list price of $18 will be applicable along with a 10% discount so $18×5=90 with 10% discount is= $90-$9= $81
- The price here will be $400+$81 = $481

**Let’s take another scenario and see what the price will be if 55 units are ordered:**

- $400 upto 40 boxes.
- From 41 to 50 units the price $18 will be applicable along with a 10% discount so $18×10=180 with 10% discount is= $180-$18= $162
- For the next 5 units from 51 to 55 price 0f $18 will be charged and the discount will be 15% so $18×5 = $90 with 15% discount = $80- $12= $68
- The price here will be $400+$162+$68 = $630

**Rule No 2: For a specific customer**

- Lunchbox’s list price is $15. For customer Mango if 30-40 quantity is ordered then 10% discount is offered and if 41-50 are ordered then 20% discount is offered on Lunchbox. This price has to be given all the time to Mango. Another Customer Orange has a special relationship with Tango food and is always given a special price. This was set up automatically for Orange when the first quote was created.

**Solution**: This is a contract pricing scenario. The contract pricing is set on the quoteline in the quoteline editor.

Note: Contract can be manually set from Orange and Mano’s account settings. If this conditional and not permanent a price rule is more appropriate, then setting up the contracted price

**Rule No 3**: Salesreps and self-order customers of Tango foods want to assign different quantities for different months of their subscription. For example, they want to assign 20 lunchboxes for 1^{st} month, 30 for 2^{nd} and 40 for third month for a 3-month subscription? Can this be done in one quote? Can this be done at all and under what conditions and when?

**Solution**: The scenario that is described in rule no 3 is a MDQ (Multidimensional quote scenario). A **subscription product** can also be a MDQ product but a bundled subscription product cannot be a MDQ product. In our case **Lunchbox is a bundled subscription product **hence this is not possible. If let’s ay one of the Saladboxes is available on subscription, then this scenario is valid for that salad box. In such a case Salad box has to be set up also as a Multidimensional quote product through price dimension related list on the product record.

**Rule No 4**: Tango foods is not getting the **return on investment** for some of the food boxes which it is selling in addition to Lunchbox. Tango foods has decided that salads and soups when bought individually have to be marked 60% above the cost. The list price of 12 oz salad is $10 and 12 oz soup is $8 per box. The cost of salad 12 oz is $8 per unit and the cost of 8oz soup is $6 per unit. Sales managers at Tango foods also want that reps should not be able to markup less then 60% of the cost. The maximum that they can mark up is 90% of the cost. So, the price of salad has to be cost+60% —- cost +90%. The cost should not be editable in the quote.

**Solution**: This is a cost-plus markup pricing scenario. As this is a policy change by Tango Foods, applicable salads and soups will have to undergo a **pricing method **change. The pricing method on these products has to be changed to cost. Per unit costs has to be maintained in the ‘Cost’ related list. There is a field in the pricing section of the product record “Cost editable”- This should be left unchecked. There is a mark up field in the quoteline where the sales rep adds the mark. A validation has to be added in the quote line object which will ensure that the mark up field is 60% to 90% of the unit cost.

**Let’s see what the price will be with 60% and 90% markup for Salads and Soups:**

- Salads For qty 1 with 60% Mark upà Cost = $8, 60% of$ 8 = $4.8, so per unit price will be $12.8. Note that the list price is $10 and will not be valid in this case
- Salads For qty 1 with 90% Mark upà Cost = $8, 90% of$ 8 = $7.8, so per unit price will be $15.8. Salesreps have a band of $12.8 to $15.8 in this case. Same as above, list price is $10 and will not be valid in this case

**Rule No 5**: Rule 4 + Production managers have faced a resource crunch during COVID and have to include a overhead cost of additional 10% at **Tango foods** also want that reps should not be able to markup less then 70% of the cost. The maximum that they can mark up is 100% of the cost. So, the price of salad has to be cost+70% —- cost +100%. The cost should not be editable in the quote.

**Solution**: Same as rule no 4 with the applicability of an additional overhead cost of 10% to the per unit cost and only conditionally applicable during **COVID** (for the months of June- Aug). Since this involves an additional conditional cost, we can use price rule and price action to edit the per unit cost. The other option is a manual option of letting the sales reps edit the cost by checking the cost editable field on the** product record** but this not the best option.

**Let’s see what the price will be with 70% and 100% markup for Salads and Soups along with additional 10% overhead cost:**

- Salads For qty 1 with 70% Mark up: Cost = $8, 10% Markup on $8 is $0.80 so the total per unit cost becomes $8.80. 70% of$ 8.80 = $6.16, so per unit price will be $8.80+$6.16= $14.96. Note that the list price is $10 and will not be valid in this case. We can apply rounding rules here.

Salads For qty 1 with 100% Mark up: Cost = $8, 10% Markup on $8 is $0.80 so the total per unit cost becomes $8.80. 100% of$ 8.80 = $8.80, so per unit price will be $8.80+$8.80= $17.60. Note that the list price is $10 and will not be valid in this case. We can apply rounding rules here. List price can remain the same in both scenarios and will not be affected as the **pricing method** is cost.

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