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Discounts

This article gives you insights into adding discounts to products and services.
L
Lavanya R
30 May, 2023 - Updated 8 months ago
Table of Contents

Introduction

Discounts in Vtiger Configure Price Quote refer to the reduced prices of products and services offered to customers. Discounts are essential in the Sales, Quotation, and Pricing processes. They help businesses offer customers special pricing or incentives based on various criteria. Offering discounts is a standard business practice to attract customers, increase sales, and build customer loyalty.

If the discount criteria match, you can configure discounts in the  Discount module, which will be displayed in the Inventory modules item details section.

You can add discounts for both products and services in the Discounts module. 

Once the CPQ add-on is installed, you can look for the Discounts module. Discounts can be applied to Sales Order, Quotes, Deals, and Invoices in the Inventory module.

Discounts are added to products and services. Discount cards will be automatically applied to Sales Order, Quotes, Deals, and Invoices in the Inventory module if the Discount criteria match.

Line item level discounts are applied to specific line items or products within a quote. Businesses can customize discounts for each line item based on customer-specific pricing agreements, volume-based discounts, or other applicable criteria.
 

Vtiger CPQ also allows the application of conditional discounts based on predefined rules or criteria. For example, businesses can set up discounts based on customer segments, order quantities, contract terms, or specific promotions.

Once the CPQ add-on is installed, you can find the Discounts module.

Discounts can be applied to services in various ways to attract customers and promote business growth.

Businesses often provide introductory discounts when launching a new service or targeting new customers. These discounts can entice potential customers to try the service at a reduced rate, making it more appealing and encouraging them to become regular clients. 

Offering discounts based on the volume or duration of services purchased can incentivize customers to engage in more extensive or long-term commitments. For example, a cleaning service might offer a discounted monthly or annual contract rate or a software company may provide a discounted package for multiple-user licenses.

Discounts can be offered during special events or occasions related to the service. For instance, a spa might offer discounted rates for Mother's Day, or a fitness center might have promotions for the New Year.

Discounts are added similarly for Services. In Vtiger CPQ, values are added as conditions for services. Once the conditions are satisfied, applicable discounts will be applied.
 

Types of Discounts

There are two types of Discounts in Vtiger CPQ:

  1. Product Discount
  2. Buy X Get Y Discount

Product Discount

You can apply a Product Discount to Contacts or Organizations.
When applying Product Discount, you can choose whether the discount should be based on the quantity or amount, which determines the criteria for the discount.

You can select your discount to be applied to:

  • Any item - You can select any item in the Product module to apply discounts.
  • Specific item - You must select conditions for a specific item. Based on the matched conditions, discounts will be applied. The conditions are applicable for Products and Services.

Once the items are selected, the discount is applied as a percentage or amount. It is mandatory to select to whom this discount will be applied. You can select: 

  • Any Contact or Organization - You can select any Contact or Organization to apply discounts. 
  • Specific Contact or Organization - You must select conditions if a specific Contact or Organization is selected. Based on the matched conditions, the Contact or Organization will be selected to which the discounts will be applied. The conditions are applicable for Contact or Organization.

You can also select the number of times a discount can be applied per order. This will help set limits for your discounts. You can also select the Active dates for your discounts to begin from and select the End date till when you want your discounts to be applicable.

For example, a 10% discount is applied if a customer buys ten products. For this, the minimum quantity of the product has to be 10. And you can select the discount to be applied to any or specific item, any or specific contact, or organization. Then the customer will get a 10% discount on purchasing ten products.

Buy X Get Y Discount

This type of discount can be applied when you buy a product for which you will get additional products with a discount.

This discount can be applied to:

  • Any item - You can select any item in the Product module to apply discounts.
  • Specific item - You must select conditions for a specific item. Based on the matched conditions, discounts will be applied. The conditions are applicable for Products and Services.

It is mandatory to select to whom this discount will be applied. You can select:

  • Any Contact or Organization - You can select any Contact or Organization to apply discounts. 
  • Specific Contact or Organization - You must select conditions if a specific Contact or Organization is selected. Based on the matched conditions, the Contact or Organization will be selected to which the discounts will be applied. The conditions are applicable for Contact or Organization.

Consider this example, If a customer selects any item and buys a product worth 100 rupees (X), the customer will get two items at a 20% discount. (Y)

Feature Availability

One Pilot

One Professional

One Enterprise

Feature Availability

Discounts

NA

Paid

Paid

Benefits

Here are some benefits of using the Discounts feature in Vtiger CRM:

  • Creating Quotes: Discounts are an effective feature for creating Quotes easily.
  • Applying Discount card: Discount cards will be automatically applied once the product matches the Discount criteria.
  • Applying Discount card to Line item: Discounts can be added to each individual Line item.

In this article, you will learn about:

  • Adding Product Discount
  • Adding Buy X Get Y Discount
  • Adding a product to a Quote

Key Terminology

 

Key Term

Definition

Discounts

Discounts in Vtiger CPQ refer to the reduced prices of products and services offered to customers.

Product Discount

It refers to the discounts applied on products.

Discount Criteria

The Discount criteria refer to the conditions or factors determining how and to whom the discount is applied.

Discount card

The discount card applies preconfigured discounts to products or services within the quoting and pricing process.

Any item

Any item refers to any individual object, thing, or entity that can be physically or conceptually identified.

Specific item

A specific item refers to an object, thing, or product that can be identified and distinguished from others.

Adding Product Discount in Vtiger CPQ

Follow these steps to add Product Discount:

  1. Log in to the CRM.
  2. Go to Inventory.
  3. Select Discounts under the Catalog section.
  4. Click +Add Discounts. A Creating Discounts page will appear.
  5. Enter or select information for the following:
    1. Select Discount type as Product Discount.
    2. Type Discount Name.
    3. Select Assigned To from the drop-down.
    4. Go to the Discount Criteria section.
    5. Select minimum purchase value.
      1. Quantity
      2. Amount
  6. Enable 
    1. Any
    2. Specific
      1. Product
        1. All Conditions (All conditions must be met)
        2. Any Conditions (At least one of the conditions must be met)
      2. Services
        1. All Conditions (All conditions must be met)
        2. Any Conditions (At least one of the conditions must be met)
  7. Select the Discount customer will be getting from the drop-down.
    1. Percentage
    2. Amount
  8. Enter Buy Quantity and Get Percentage.
  9. Go to Who should get a discount section.
    1. Any Contact or Organization
    2. Specific Contacts or Organizations
      1. Contacts
        1. All Conditions (All conditions must be met)
        2. Any Conditions (At least one of the conditions must be met)
      2. Organizations
        1. All Conditions (All conditions must be met)
        2. Any Conditions (At least one of the conditions must be met)
  10. Go to the Maximum discount use section.
  11. Enable Limit to use per order.
  12. Select Active dates by clicking the Calendar icon.
  13. Enable Ends On and select the date by clicking the Calendar icon.
  14. Click Save.

You have successfully added a Product Discount. You will find the Product Discount record in the Discount module.

Product Discount will be displayed when you are adding products to  Quotes. This will ensure that Product Discount have been added successfully. The discounts will appear only if the discount criteria match the product you have added.

The discounts are visible on the Quotes, Invoices, and Sales Order page.

Adding Buy X Get Y Discount in Vtiger CPQ

In Vtiger CPQ, you can configure a discount rule where customers can receive a specific discount (Y) when they purchase a certain quantity or amount of products (X). This type of discount rule is commonly referred to as Buy X Get Y Discount.

You can define the Discount Criteria while creating the discount.

For example, consider this offer - Buy five products, Get two with a 10% discount. This would specify the quantity or amount of products five products (X) that customers need to purchase to be eligible for discount two with a 10% discount (Y). 

Follow these steps to add a Buy X Get Y discount:

  1. Log in to the CRM.
  2. Go to Inventory.
  3. Select Discounts under the Catalog section.
  4. Click +Add Discounts. A Creating Discounts page will appear.
  5. Enter or select information for the following:
    1. Select Discount type as Buy X Get Y.
    2. Type Discount Name.
    3. Select Assigned To from the drop-down.
    4. Go to the Discount Criteria section.
    5. Select minimum purchase value.
      1. Quantity
      2. Amount
  6. Enable 
    1. Any Item
    2. Specific Item
      1. Products
        1. All Conditions (All conditions must be met)
        2. Any Conditions (At least one of the conditions must be met)
      2. Services
        1. All Conditions (All conditions must be met)
        2. Any Conditions (At least one of the conditions must be met)
  7. Select the number of items the customer will be getting.
  8. Select Product or Service from the drop-down Or 
  9. Select the product by typing the first three letters of the product you want to add Or  By clicking the Select icon Or Clicking + Create icon to create a new product.
  10. Go to Who should get a discount section.
    1. Any Contact or Organization
    2. Specific Contacts or Organizations
      1. Contact
        1. All Conditions (All conditions must be met)
        2. Any Conditions (At least one of the conditions must be met
      2. Organizations
        1. All Conditions (All conditions must be met)
        2. Any Conditions (At least one of the conditions must be met)
  11. Go to the Maximum discount use section.
  12. Enable Limit to use per order.
  13. Select Active dates by clicking the Calendar icon.
  14. Enable Ends On and select the date by clicking the Calendar icon.
  15. Click Save.

You have successfully added a Buy X Get Y discount. You will find the added Buy X Get Y Discount record in the Discount module.

Adding Products with Discounts in Quotes - Use case

Once you have added the discounts to the Products, let us see how it is applied to the Quotes module.

Follow these steps to add Product In Quotes:

  1. Log in to the CRM.
  2. Go to Sales.
  3. Move to the Sales Engagement section.
  4. Select Quotes.
  5. Click +Add Quote. A Creating Quote window opens.
  6. Enter or select information for the following:
    1. Type the Quote Name.
    2. Select the Quote stage as New from the drop-down.
    3. Select the Contact or Organization. (Ensure the Contact or Organization you add is linked to the Quotes module.)
    4. Add Billing Address.
    5. Add Shipping Address.
    6. Go to the Item Details section.
    7. Enter the first three letters of the Product name OR
    8. Select the icon beside the Product name field. A list of Products will be displayed.
    9. Select the Product you want to add to the Line items.
    10. Enter the number in the Quantity field.

Based on the Quantity, the relevant discount card will be applied.

  1. Click Save.

You have now successfully added the Discounts in the Quotes.

Note:
  • You must link the Contact or Organization to the Quotes module. The discount card will not be displayed if it is not linked, even if the product matches the discount criteria.

Common Errors

  • A discount card will not be displayed for products or services when you create a Quote and add a line item without linking a Contact or Organization.

Troubleshooting Tips

  • If you want the CRM to display Discount Cards for your products or services, do not forget to add either Contacts or Organizations to a Quote.

Limitations

  • When the limit order is set to 1, and the discount percentage is applied, the quantity of all the products that meet the specified conditions will be considered. However, the discount percentage will not be applied to every product. It will be applied to only 1st product.
  • If the limit is not set to 1, then discount percentages are applied to all products associated with the quantity.


 





 

 
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