A price book is a named list of the prices each product sells at, such as list, partner or regional prices; in Salesforce it is Pricebook2, with one PricebookEntry per product and currency.
A worked example
An illustration with round numbers. A company sells one product, a $1,000 annual license, direct in the US and the UK and through resellers. It keeps two price books. The Standard Price Book lists the license at $1,000 and £800. A Partner price book lists it at $800 and £640, 20% less. A deal sourced by a reseller uses the Partner book, so every line on the quote starts at the partner price and the rep doesn't have to remember the 20%. When one large customer negotiates $900, that isn't a third price book. It is a price on that customer's account, and the company still has two price books.
The common mistake: a price book per customer
Price books are for segments that share a price: a channel, a region, a currency. When every negotiated deal gets its own price book, the count climbs, each product change has to be repeated in every book, and nobody can tell which price is current. Keep negotiated prices on the account as a contracted price and volume breaks in a discount schedule. Two admin details save time later. Decide how each account gets its price book; it is usually based on the account's address, and a small automation can assign it. And in Kugamon, changing the Default Price Book doesn't update existing Additional Account Info records, so plan a one-time update of the accounts you already have. If you're moving from Conga, turning its Price Lists into Price Book entries is the pivotal step; see the Conga migration guide.
In Salesforce
Salesforce stores each price book in Pricebook2 and each product's price in a PricebookEntry. A product needs an entry in the Standard Price Book before it can be added to a custom one (a channel, a region), and an Opportunity draws its products from one price book at a time. Price books hold list prices only; native Salesforce has no tiers or account-specific prices. Salesforce CPQ prices from the standard price books and layers price rules, discount schedules and contracted prices on top. Revenue Cloud Advanced reuses price book entries alongside its pricing procedures. Conga CPQ uses its own Price List objects (Apttus_Config2__PriceList__c) instead.
How Kugamon handles it
Kugamon prices from the standard Product, Price Book and Price Book Entry, with no separate price list objects, so the price books your admin maintains today are the ones reps quote from. Setting up a product takes four steps: create the Product, configure its Additional Product Info record, create a Standard Price for every currency you sell in, and add it to the right Price Book. A Default Price Book in Kugamon Settings is copied to each new Account's Additional Account Info record, an admin can assign a different one per Account with [Choose Price Book], and Quotes and Orders default to it. Tiered Pricing is set per Price Book, and Account Pricing honors negotiated rates without extra price books.
Related terms
Source: help.salesforce.com