Salesforce Certified CPQ Specialist Practice

What type of pricing is typically set for Subscription Products in Salesforce CPQ?

1. The same as standard products

2. Dynamic pricing based on market conditions

3. Contracted pricing specific to customers

4. Recurring pricing models based on the subscription terms

The correct answer is: Recurring pricing models based on the subscription terms

Subscription Products in Salesforce CPQ typically utilize recurring pricing models based on the subscription terms. This means that the pricing is structured to reflect the ongoing nature of subscription services, where customers are billed regularly (e.g., monthly, quarterly, or annually) based on the duration and frequency of the subscription. This approach accommodates the predictability in revenue associated with subscription services and allows businesses to manage renewals and customer retention more effectively. The characteristics of subscription pricing can include features such as tiered pricing based on usage levels, discounts for longer-term commitments, or automatic renewal options, all of which are designed to provide flexibility and align with customer expectations in a subscription model. In contrast, other pricing types, such as the ones suggested in different choices, do not capture the essence of subscription services as effectively. Standard product pricing typically involves one-time transactions rather than ongoing billing. Dynamic pricing may fluctuate based on market conditions but does not inherently align with the regular billing cycle typical of subscriptions. Lastly, contracted pricing tends to tie specific discounts or offers to individual customer agreements, which, while relevant, does not reflect the recurring aspect central to subscription models.