Definition

What is Contracted price?

A contracted price is a price or discount negotiated with one customer that applies automatically to that account's quotes and orders, usually for the term of its contract.

A worked example

An illustration with round numbers. A product lists at $100 a seat. One customer signs a two-year agreement at $80 a seat, and also gets 15% off every product in its Training product family. In Kugamon that is two Account Pricing records on the customer's Account: one for the product with a Price of $80, and one with a Filter on the Product Family field and a Discount of 15%. Both carry the agreement's Date Start and Date End and a lookup to the Contract. From then on every Quote and Order for that Account opens at $80 a seat and 15% off training, and the rep doesn't look anything up. When the dates run out, the lines fall back to the standard price unless someone renews the terms.

Where contracted prices go wrong

The usual failure is a negotiated price that outlives its reason. A discount with no end date keeps applying after the contract renews at new terms, and nobody notices because the quote looks normal. That gap between what the contract says and what gets billed is a form of revenue leakage. Three habits prevent it: give every contracted price an end date that matches the contract, review the account's prices as part of each renewal, and keep negotiated prices on the account rather than in a new price book, so a list-price change still reaches everyone else. Decide the precedence once, too: in Kugamon, a line priced from the customer's existing Asset or Subscription uses its Purchase Price, which outranks Account Pricing.

In Salesforce

Sales Cloud has no account-specific price. The native workaround is a separate price book per customer, which multiplies quickly and has to be kept in step with every product change. Salesforce CPQ stores negotiated prices in SBQQ__ContractedPrice__c, related to the account, and applies them to that account's new quotes on top of the standard price book. Revenue Cloud Advanced maps them to ContractItemPrice, a Transaction Management object. When you migrate to a platform on standard price books, open contracted prices load with Data Loader alongside open quotes and subscriptions.

How Kugamon handles it

Kugamon calls it Account Pricing, a related list on the Account that honors pre-negotiated rates without extra price books. Each record names a specific Product/Service or a Filter (a range of products matched on a field value) and sets either a Price or a Discount, not both. Date Start and Date End bound it, a Contract lookup ties it to the agreement, and Lock Sales Price, Lock Line Discount and Hide override the product's own settings. A parent account's pricing applies to its child accounts unless Ignore Parent Account Pricing is checked. With multi-currency, create one record per currency. A line matched to an existing Asset or Subscription takes its Purchase Price, which outranks Account Pricing.

Related terms

Source: help.salesforce.com

Common questions

Contracted price — questions

Yes, in practice. A price negotiated for a contract term should end with that term, so the renewal is a deliberate decision rather than an accident. In Kugamon, Date Start and Date End on the Account Pricing record set that window, and the Contract lookup shows which agreement the price came from.

In Kugamon, yes by default: Account Pricing on a parent account applies to child accounts unless the child's Additional Account Info has Ignore Parent Account Pricing checked. If several records match, the account's own price beats the parent's, a specific product beats a filter, and then the most recently modified record wins.

In Kugamon, check four things: the Account Pricing record is Active and today falls between Date Start and Date End; its currency matches the Quote or Order; the product uses the List Pricing Method, not Cost; and the line isn't an Included component or matched to an existing Asset or Subscription, whose Purchase Price outranks Account Pricing.

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