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I need to see best practices for our pricing model. We have a SaaS company without a set price. All of our product pricing is dependent on the size of the company that signs up. So I'm not sure how to use the products or price books when we do not have a base price. Almost every client's pricing is different because it's based on their size. We also have one time setup fees that are not part of the subscription

Any help/ideas on how I might implement the products feature in Salesforce under our current pricing model?

Thanks

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  • I was writing an answer, and I realized that a generic answer probably won't suit your exact needs. Any solution given on SFSE might "work" for your organization, but a proper solution needs a dialog between your organization and a competent consultant/senior analyst/project manager/architect/etc. Your question is generic enough for a generic answer, but you'd do well to hold a dialog to narrow down a specific implementation that would best suit your organization.
    – sfdcfox
    Feb 12, 2015 at 20:33
  • you'll find that for rev rec rules, you'll be best served by separate SKUs (hence separate Product2 and corresponding list prices) for each tier company you sell to.
    – cropredy
    Feb 12, 2015 at 20:46

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If it's clear that the size of the organization sets the price, you can build price books with that in mind, such as Small (1-10), Medium (11-100), Large (101-1000), Supersized (10001-100000), etc. All products in the price book would reflect the base price for that category. This would make it easy if all products will have the same relative price simply based on the size of the organization and not other factors, such as volume licensing.

This won't work if pricing depends on licensing volume, where they might buy 5 licenses of type A and 2000 licenses of type B (and thus get a discount for B). In that case, you might define a discount matrix. All products would start at their base price, and each line item would be adjusted by a percent value based on the volume. You could automate this with triggers, or manually if you wanted to give bargaining power to your sales associates.

Line items can be customized many different ways, so a specific solution that suits your business needs would best be served by speaking with an expert in a back-and-forth dialog that includes a discussion about your product, your licensing model, how you'd like to view/report this data, etc.

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  • This is ultimately what I was considering doing (Small, Medium, etc.). We also have one time fees that are not part of the subscription. I wasn't sure how to marry the two.
    – David Gilbert
    Feb 12, 2015 at 20:46
  • @DavidGilbert You'd have to include them in every price book, and set the prices accordingly. Kind of a pain to manage, but that's the out-of-the-box solution.
    – sfdcfox
    Feb 12, 2015 at 21:05
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We've built a native salesforce app to manage volume based pricing i.e. to avoid salespeople having to refer to spreadsheets or ring binders. This article explains the 4 approaches to volume pricing and the impact of each on margin. It also includes links to the aforementioned app Volume Pricing In Salesforce | 4 Ways To Get On The Money

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