Salesforce Certified CPQ Specialist Practice

What functionality does CPQ offer regarding discounts?

1. Discounts can only be applied at the contract level

2. Discounts can be managed by pricing rules

3. Discounts are not supported

4. Discounts must always be fixed amounts

The correct answer is: Discounts can be managed by pricing rules

Salesforce CPQ provides robust functionality for managing discounts, and one of the key features is the ability to utilize pricing rules for this purpose. This allows organizations to establish dynamic and adjustable discount structures based on various criteria, such as customer segments, specific products, or even promotional campaigns. This flexibility enhances the sales process, enabling CPQ users to adjust discounts on-the-fly while generating quotes, thus ensuring that pricing strategies align with business goals and customer needs effectively. By leveraging pricing rules, companies can optimize revenue while also remaining competitive in the market through tailored pricing options. In contrast, the other choices limit discount functionality in ways that do not reflect CPQ's capabilities. For example, stating that discounts can only be applied at the contract level minimizes the versatility of discounts within quotes. Similarly, the assertion that discounts are not supported is inaccurate, as discounts are a critical part of pricing strategy in CPQ. Lastly, asserting that discounts must always be fixed amounts limits the potential for flexible pricing strategies that CPQ is designed to facilitate.