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Dual-sided Pricing in Salesforce (Cost plus Mark-up or Margin)

Dual-sided Pricing in Salesforce uses a product’s cost as the basis for a mark-up or margin calaculation, which improves sales rep efficiency and accuracy.

Sales users no longer need to waste time or risk making mistakes when trying to manually calculate a price for a product based on its cost and the company’s target mark-up (or margin).

  • Define the default Cost of a Product (can be directly on the Product or PricebookEntry)
  • Specify either a default Mark-up percentage or a Sales Price Margin percentage to be used on an Opportunity Product or Quote Line Item
  • The correct Sales Price is calculated automatically depending on whether the percentage defined is as a Mark-up or a Margin.

To aid transparency, users can be optionally shown the total gross profit (cash) and gross margin (percentage) achieved on every line item as well as the opportunity/quote total.

What is Dual-sided Pricing in Salesforce and why is it useful?

In Sales Cloud, you select a Product using a basic interface to add it to a Quote or Opportunity.

There is no flexibility to automatically allocate a cost and either mark-up or margin to achieve and see the effect of making changes to the percentage or cost in real-time.

Flexpricer CPQ extends Sales Cloud with out-of-the-box Dual-sided Pricing (or Cost-based Pricing) functionality that allows you to define your products’ Sales Price by applying a mark-up to its cost or by defining the margin to achieve based on the cost.

Calculations occur in real-time and the experience of editing a mark-up or margin is exactly the same as editing a Sales Price.  No additional training or mistakes because the user accidentally treats a margin as a mark-up – the effect of applying any new percentage is visible immediately.

Contracted Price record in Salesforce

Cost+ Pricing: Mark-up or Margin

If your users don’t know the difference between mark-up and margin, and they are responsible for performing the calculation, your customers could experience wildly varying prices.

Flexpricer’s Dual-sided / Cost-based Pricing offers…

  • Product Mark-up to apply a percentage to a cost to achieve a sales price – e.g. $1,000 product cost plus mark-up of 50% = $1,500 sales price
  • Product Margin to set a percentage difference between the sales price and cost – e.g. $1,000 product cost with margin of 50% = $2,000 sales price
  • And with appropriate permissions, discounts can be applied to the calculated sales price
Let’s Solve Your Mark-up Pricing Issues Today

Reduce Confusion on Mark-ups and Margins

When calculating prices using costs and percentages, it’s important to know the parameters to work within.

  • You can have more than 100% mark-up when selling a product.  100% mark-up is achieved by doubling the price.
  • You can not have more than 100% margin when pricing product.  100% margin is achieved when there is zero cost.
  • A 100% mark-up achieves a 50% margin.
Contracted Price record in Salesforce showing Parent Account checkbox
Let’s Solve Your Margin Pricing Issues Today

Dual-sided / Cost-based Pricing is commonly used by companies who mark-up their costs rather than set defined sales prices, so that they can maintain their margin even when costs fluctuate.

Learn More About Cost-based Pricing in Salesforce and Book a Call Today

Find out more about Flexpricer and Cost-based Pricing, talk through your use case with an expert in a FREE discovery call.

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