18 Feb Quoting with the Cost-Plus Pricing model | Microsoft Dynamics 365 | Quote Manager CPQ
With Quote Manager you have limitless ways to price and discount based you’re your existing pricing strategies. The price grid can be configured using bespoke calculation into our settings area, it does not require any special coding.
By default, the Quote Manager pricing grid is set up using the standard pricing method as the following:
List Price – Discount (% or amount) = Unit Sales Price
But if you are a reseller then you may not have list prices, you will request pricing Dynamically from your suppliers. In this case you will probably use a Cost-Plus Model.
Quote Manager simplifies Cost Plus pricing in Microsoft Dynamics 365, helping sales teams speed up and enhance the quoting process.
What is the Cost Plus Model?
The Cost-Plus Model is a pricing strategy where the final sales price is determined by adding a fixed percentage markup to the product’s base cost. This approach ensures that every sale remains profitable while allowing flexibility for customer-specific pricing.
In the example below, if a company sells a Flange Bolts with a base cost of $100, and the assigned markup percentage is 18%, then the final sales price will be:
Unit Sales Price = Cost Price x ( 1 + Markup % )
In this example: $118 = $100 x (1 + 18%)
Screenshot of Quote Manager System Input & Output Document
The Cost-Plus Model is a straightforward yet useful pricing method where the selling price is determined by adding a fixed percentage or margin to the cost of the product or service.
Quote Manager CPQ addon for Dynamics 365 bridges this gap by offering an intuitive, automated solution for managing cost-plus pricing models..
Sales teams often struggle with Manual calculations that increase the risk of errors and Lack of automation for margin-based pricing adjustments. This can lead to inefficiencies, mispricing, and lost revenue opportunities.
Benefits of using Quote Manager CPQ
Implementing Quote Manager CPQ in Microsoft Dynamics 365 enables businesses to:
- Reduce pricing errors by eliminating manual calculations.
- Improve sales efficiency through automation.
- Enhance profitability by ensuring the right margins are applied consistently.
- Improves Transparency – Clear cost-plus calculations provide clarity for both sales teams and customers.
- Flexibility to adjust pricing based on supplier costs and market conditions.
- Gain a competitive edge with flexible, responsive pricing strategies.
- Customer-Specific Pricing – Different markups can be applied based on customer relationships, ensuring personalized pricing strategies.
CSV Import can also help with the Cost-Plus approach to selling. Quotes from supplier can be directly imported via CSV into the Quote Manager.
All the user needs to add into the CSV is … Product ID, Description, Quantity and buy price. The cost-plus calculations in Quote Manager will then calculate the sales price from the desired margin automatically.
Conclusion: Take Control of Your Pricing Strategy
If your business relies on pricing Strategy, Quote Manager CPQ for Dynamics 365 is the perfect solution to simplify your quoting process, enhance accuracy, and drive profitability.
Don’t let manual pricing slow you down—embrace automation and precision, let businesses can focus on closing deals faster and more effectively.
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