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Young SaaS companies often face several challenges with the out-of-the-box Sales Cloud solution. Although it is powerful, Sales Cloud needs proper setup to provide the necessary tools and visibility for SaaS companies. Due to the nature of the industry, SaaS companies often use complex pricing models and require advanced pipeline visibility.

For SaaS companies looking to employ different pricing models, the out-of-the-box Salesforce setup can have limitations. In this article, we identify four challenges that you may face as a SaaS company using the standard Salesforce solution.

Quantity-Based Pricing Models

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Quantity-based pricing models charge different prices for goods or services depending on how many units are purchased. For instance, the first service may cost 100% of the base price, while the second costs 75% and every one after those first two gets discounted to 50%. Many SaaS companies offer discounts based on quantity, as they sell their software based on licenses, installation sites, or even different domains. However, out-of-the-box Salesforce doesn’t have a framework in place to automatically give products the right prices under this type of pricing model.

Bundled Products

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Another pricing model that Salesforce doesn’t easily accommodate is bundled products. This comes into play when a company sells many different goods or services, each with their own prices, but buying several together results in a discount. As it is, adding two products to an opportunity in Salesforce simply adds both prices together. There is no solution for companies that want to offer bundled prices when customers purchase two or more of their services together. Because many SaaS companies offer bundled software solutions, they need to be able to track this in Salesforce.

Markups

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Markups are used in many pricing models, but they are unavailable in the standard Salesforce instance. Under this model, the price equals the Production cost of an item/good plus a given Markup. While you can add discounts to a price, there is no way to increase the standard price (or provide a negative discount rate). And while it is possible to automate a markup by adding a new field and using a formula, these are extra steps that may cause complications further down the line.

Inflexible Quotes

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The first issue with quotes for SaaS is that Salesforce doesn’t include many pricing models out of the box, so it can be hard to create accurate quotes. For example, without customization, it is impossible to create a quote that would display the details of a Quantity Based Pricing model. Customers would not see in their quotes that due to the number of units they are purchasing has led them to pay a lower price on these. 

Additionally, Salesforce contains limited quote templates. If you want a quote to include anything not already on the quote template page, like revenue schedules, you cannot. This means that your quote cannot show how much money is due by certain dates for multiple dates. You also cannot modify fonts, font sizes, or formatting, which many companies like to do for branding purposes.

The Solution

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There are two main solutions to the issues outlined above. First of all, you can have a Salesforce expert like Ntegro create an automation to solve the problem for you. For quantity-based pricing, bundled products, markups, and even quotes, we can use automation as a temporary solution. However, as you grow and scale, automation may not be the best long-term fix to these problems. For SaaS companies ready to take the leap, Salesforce offers CPQ (Configure, Price, Quote), which addresses all of these issues. However, CPQ is an expensive tool that companies only need if they have complex pricing models. If you are not ready to budget for this add-on, automation is the way to go!

Ntegro Is Here To Help

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If you’d like help with automation to handle your pricing or quote issues, Ntegro is here to help. We’d be happy to talk to you about customization to design a solution specifically for your needs. And if you’d like to invest in Salesforce CPQ, we can help you with that too! Get in touch with us today for a free consultation, and let’s get the conversation started!