What is dynamic pricing in the context of Salesforce CPQ?

Dynamic pricing in the context of Salesforce CPQ refers to pricing that adjusts in real-time based on specific configured rules or conditions. This allows businesses to respond to various factors such as market demand, customer behavior, or inventory levels. By utilizing dynamic pricing, organizations can optimize their pricing strategies to maximize revenue and competitiveness.

The ability to have pricing that shifts in response to changing conditions is a key feature of Salesforce CPQ, allowing for pricing strategies that are tailored to both the needs of the business and the unique circumstances of each sale. This adaptability enhances the sales process, empowering sales teams to offer competitive pricing while also considering profitability.

In contrast, fixed pricing does not offer this level of responsiveness and remains constant regardless of market conditions or sales strategies. Pricing based solely on market trends limits the flexibility and responsiveness that dynamic pricing provides. Promotional pricing, while it may target specific segments, does not encompass the broader scope of automated adjustments that dynamic pricing entails.