Types Of Products in Salesforce CPQ
In Salesforce CPQ we have several types of Products:
- Bundle Products
- MDQ Products
- Subscription Products
- Asset-based (One-time) Products
- Usage-based Products
A bundle Product is a product with features and options which give us the ability to configure more complex products.
- Bundle parent: The Main product is the bundle itself.
from Configuration Type we can enable any product for configuration.
- Required means that the configuration needs to be done for sure.
- Allowed giving you control to either configure or skip the configuration.
- Disable removes the option for configuration.
- Features: A feature Contain a group of options and works as a small container.
- From the Number field, we can define on which position this Feature will appear in Configurator.
- Min/Max Options: from these fields we can define the min and max number of selections inside a feature.
- Category: this Picklist field we can use to make tabs inside the configurator and add features to it.
- Discount Schedule: if we want to override the product discount schedule from this discount schedule.
- Product Options: You can consider these as sub-products of the bundle parent and it does not contribute to the bundle price if you select its Bundled checkbox.
- Number: From here you can Define the sequence of the product option under feature.
- Quantity: You can define the default Quantity from here.
- Quantity Editable: if the Quantity will be editable.
- Selected/Required: If the Selected checkbox is checked then that option will be selected by default and from required that option can be selected as required and can not deselect.
- Optional SKU: Optional SKU is the product that will become the product option in the bundle.
- Feature: from here we can define In which feature this product option will appear.
- Type: We can mark that child product a component/Accessory/Related Product, accordingly the quantity and the selection of the product will be dependent.
- Option constraints: Use constraints to control how users can select options together or exclude based on any other product.
- Constrained Option: Lookup to the option that Salesforce CPQ enables or disables.
- Constraining Option: Lookup to the option that determines whether CPQ enables or disables the Constrained Option.
- Dependency: Selecting the Constraining Option causes Salesforce CPQ to enable the Constrained Option for selection.
- Exclusion: Users can not select the Constrained Option if they’ve selected the Constraining Option.
MDQ(Multi-Dimensional Quoting) Products
You can show a subscription product in segments. Each segment represents a unit of time (quarter, month, year, or custom) and accordingly the price and the quantity can be different. using MDQ you can have more detailed control on quantity and pricing of the sales.
for making any subscription based product as MDQ product we need to define the price dimension for that product.
- Type: here we can define the segments either it can be yearly, Monthly, Quarterly, or Custom and if we have any activation/Installation fee then we can define that as One-time as well.
- Unit Price: use this field to populate the price if we want to override the product price or add a price for the Activation/Installation fee.
- Using price dimension we can override many configurations of the product.
These products are basically services set up to run for a determined period, such as a year or a month. During contract creation, these products are converted to subscriptions. you can check if a product is a subscription by checking if the Subscription pricing field is populated either Fixed Price or Percent of total(POT).
These products can be subscribed for multiple years and can be renewed as well.
Percent of total products calculates a percent defined on a product from all the products that are marked as Include In Percent Of Total.
We can further maintain the Percent of total scope from the Product Option.
Evergreen Subscriptions can be enabled from the Salesforce CPQ Package Settings in the subscriptions and Renewals tab. Evergreen subscription products stay active until canceled and can’t be renewed.
Asset-based (One-time)/ Non-Subscription Products
If a product’s Subscription Pricing is not defined then that product is considered an Asset-based product.
During contract creation, non-subscription products can convert to an Asset depending on the option chosen in the Asset Conversion field (One per unit, One per quote line, or None). Assets are the records of non-subscription products that were quoted or actually sold to customers.
Quote and price your products based on predefined rates for future consumption of the product or service you’re selling. The price scales alongside usage, reducing initial purchase barriers and driving higher revenue. you can manage usage-based products with either consumption schedules or price schedules.
A product requires several field values to work with a consumption schedule.
- Subscription Pricing: Fixed Price
- Charge Type: Recurring
- Billing Type: Arrears
- Subscription Term populated
- Billing Frequency populated
You can enable usage based pricing from the CPQ Package settings, Go to Pricing and Calculation tab and Enable usage based pricing.