Salesforce Certified CPQ Specialist Practice

What type of pricing model does the Percent of Total approach represent?

1. A model that determines price based on total sales

2. A model that calculates price as a percentage of selected products' total price

3. A model that exclusively uses bulk pricing

4. A model established by customer negotiation

The correct answer is: A model that calculates price as a percentage of selected products' total price

The Percent of Total pricing model calculates price as a percentage of the total price of selected products. This approach is often used when offering discounts or special pricing based on the cumulative value of a group of products in a quote. The sales team can apply the percentage to the total sum of selected items, allowing for flexible pricing strategies that reflect the total order rather than individual item prices. This model is particularly useful in incentivizing customers to purchase more products, as it effectively ties the pricing reduction to the overall value of the order. It encourages bulk purchasing, creating a win-win situation for both the business and the customer. The other options do not accurately describe the Percent of Total model. The first option suggests a direct relationship with total sales, which does not encompass the notion of individual product price contributions. The third option focuses solely on bulk pricing, while the Percent of Total model can apply to a variety of pricing circumstances beyond just bulk. Lastly, the fourth option implies a pricing model that relies on customer negotiation, which is distinct from the automated calculation logic represented by the Percent of Total method.