Target pricing
When a customer needs a different price than your recipe calculates, request a target price. An owner or manager approves it, and the price is applied when you create the line items.
Request a target price
- On the deal, go through the card to the quote preview.
- Choose Request Target Price.
- Enter the price the deal should have under Target Price.
- Check the breakdown, then choose Submit for Approval.
The breakdown shows the discount the price needs and whether your margin is still sufficient:
- Representatives see Sufficient or Insufficient, not the cost and margin figures.
- Owners and managers also see the vendor cost, the margin amount and the exchange rate.
- A Max Discount Exceeded warning appears if the price needs more discount than the recipe allows. You can still submit.
A request is refused if:
- the price is zero or above 10,000,000,
- its currency is not the recipe's customer currency,
- the recipe is not active,
- the deal already has an open request, or
- the price would take the margin below zero. See Negative margin.
Approval
Requests appear in the Approvals tab of the app settings. Owners and managers approve or reject them there. Rejecting needs a reason. See Approvals.
A representative can cancel their own open request. On the card, Check Status shows whether a request has been decided.
Create line items with the approved price
Approving a request does not change the deal. The representative opens the deal again and creates the line items as usual. The approved price is applied at that point, if it is lower than the total the recipe calculates.
How the reduction is spread:
- QuoteXelerator works out how much the total has to come down.
- It spreads that amount proportionally across the line items that carry margin.
- Line items without margin, such as an app billed at vendor cost, keep their price.
- Each line item keeps its original price next to the new discount, so you can see what changed.
If the line items do not carry enough margin to reach the approved price, line item creation stops with an error.
Negative margin
A target price that takes the deal below zero margin is allowed for:
- owners, and
- managers the owner has given the Negative-margin override. They enter a Reason for negative-margin bypass of 10 to 500 characters before they submit.
The request still goes through approval, and it is recorded in the compliance log with the reason. Everyone else sees a message asking them to contact a manager, and the blocked attempt is recorded too. See Negative-margin override for how the owner gives the permission.