Pricing Engine is Supplyframe CPQ's comprehensive, rules-based pricing configurator crafted to meet the unique needs of electronics distributors and suppliers. This powerful tool is designed to optimize revenue, enhance margins, and maintain consistent pricing discipline across your product range and customer base.
How Customer Specific Pricing Rules Interact With Global Pricing Rules
Customer Specific Pricing Rules are pricing rules that apply to specific customer accounts. Global Pricing Rules on the other hand, are a set of configurable rules that act as the default pricing mechanism when quoting customer accounts that do not have Customer Specific Pricing Rules.
If a customer does have specific pricing rules configured however, the pricing rules specific to this customer account will take precedence, and the Global Rules will not apply to that customer’s quote.
Accessing Customer Specific Pricing Rules
Navigate to the System Settings page to access Customer Specific Pricing Rules. Only Admin users are able to edit these rules in Supplyframe CPQ.
In this page, CPQ will display all the customer accounts you have supplied in your Customer master data.
Configuring Customer Specific Pricing Rules
Search by Customer Name or Customer ID to find a specific customer account.
Alternatively, you can filter your list by Customer Type and/or Pricing Rules to the customer account you need to reference.
To update a Customer Specific Pricing Rule for an individual customer account, click on the Edit button.
To update a Customer Specific Pricing Rule for more than one customer account, select the customer accounts you need, then click the + Add Pricing Rule button.
Note that if a rule is applied this way, it will override and replace any existing rules that may be in place for your selected customer accounts.
Just like Global Pricing Rules, there are two components to Customer Specific Pricing Rules:
- Price Sources
- Advanced Pricing Formulas
Price Sources
The first step when configuring Customer Specific Pricing Rules are to add the prices you want CPQ to use when calculating line item pricing.
Price Sources are the different types of price data your company has provided to be used in your instance of Supplyframe CPQ.
CPQ supports the following price types:
- External Price
- Target Price
- Contract Price
- Book Price
- Web Price
- Quote History
- Order History
- Standard Cost
Once you've selected your price source, you can optionally add a markup or discount, and click on Add Source to add the pricing rule to your price assignment priority list:
CPQ will add the new price source to the bottom of your list. Use the left most column to drag-and-drop your price sources into the priority in which they should be applied to your line items:
Advanced Pricing Formulas
To create Advanced Pricing Formulas, follow the steps below:
- First enter the percentage markup or discount that you would like to apply to your rule
- Select either Markup or Discount from the dropdown.
- Choose the price source you'd like to use for your advanced rule.
- If you would like to specify criteria that must be met for this rule to apply, click Conditional.
- A new Formula section will appear - select your fields, operators, and values.
- If you would like to create a rule in which more than one criteria must be met, select the + button to add additional conditions.
- If you would like your new rule to only be valid during certain dates, click Duration and choose the dates that apply to this rule (note that if duration is not selected, the rule will always be active).
- Click + Add Rule to add your new advanced rule to the Assignment Priority table below and your rule will be added to the bottom of the list.
Once you've created your rules, drag-and-drop your advanced rules in the priority in which it should be applied by using the left most column in the Assignment Priority table.
How Customer Specific Pricing Rules Are Applied
If Customer Specific Pricing Rules are applied to your list, for each line item, the Pricing Engine will sequentially go through the Price Sources in the order they're prioritized and see if the part you are quoting has the price source.
Pricing Engine will then go through the following steps:
- Take the first matching Price Source
- Look up the appropriate price
- Apply the markup/discount/GP% that is specified for the Price Source
- Sequentially go through the Advanced Pricing Formulas in the order they're prioritized
- Apply the first Advanced Pricing Formula that matches the Price Source in step 1
- Load the resulting prices into your line item
Remove Customer Specific Pricing Rules
To remove Customer Specific Pricing Rules for a single customer account, find the customer account you need, then simply click the Remove button:
To remove Customer Specific Pricing Rules for more than one customer account at once, select the customer accounts you need, then click on the Remove Pricing Rules button.
CPQ will then list the customer accounts you are removing pricing rules for and will ask you to Remove.