Salesforce Certified CPQ Specialist Practice

What is the difference between a Standard Price Book and a Custom Price Book?

1. A Standard Price Book applies to all products, while a Custom Price Book applies to a single product

2. A Standard Price Book applies to all customers, while a Custom Price Book applies to specific customer segments

3. A Standard Price Book is managed by the customer, while a Custom Price Book is not

4. A Standard Price Book allows discounts, while a Custom Price Book does not

The correct answer is: A Standard Price Book applies to all customers, while a Custom Price Book applies to specific customer segments

A Standard Price Book is designed to apply universally to all products, serving as a baseline pricing model across the entire organization. This means that every customer has access to the same pricing information regardless of their individual characteristics. In contrast, a Custom Price Book allows for tailored pricing strategies that can be specific to certain customer segments, providing flexibility to meet different needs and negotiating terms. This differentiation is vital for organizations that need to establish varied pricing models to accommodate different customer relationships, competitive strategies, or market conditions. Custom Price Books can be used to provide discounts or special pricing to specific groups while maintaining the Standard Price Book for general sales purposes. Regarding the other options, the statement about the Standard Price Book applying to all products while the Custom Price Book applies only to a single product is a misconception; Custom Price Books can include multiple products tailored to specific customer segments. Similarly, the management aspect does not clearly define the relationship with the customer, and both types of price books can allow discounts, but are structured differently based on the pricing strategy being employed.