Dynamic Pricing in Zuora CPQ
The Dynamic Pricing feature in Zuora CPQ allows for flexible, attribute-based pricing models, reducing SKU proliferation and enabling real-time pricing at quote time.
The Commerce catalog in the Zuora tenant allows pricing to be set up based on attributes.
Attribute-based pricing eliminates SKU proliferation, which often occurs when a separate SKU is required for each variation.
In Zuora CPQ, dynamic pricing refers to the ability to calculate product charges at quote time based on attributes. Zuora CPQ integrates with Zuora Billing and Product Catalog to offer flexible pricing models. It allows sales teams to generate flexible, real-time pricing.
Dynamic Pricing in CPQ supports the following charge types and pricing models:
| Charge type | Supported models |
|---|---|
| One-Time | Flat fee |
| Per Unit | |
| Volume | |
| Tiered | |
| Recurring | Flat fee |
| Per Unit | |
| Volume | |
| Tiered | |
| Usage | Flat fee |
| Per Unit | |
| Volume | |
| Tiered | |
| Overage | |
| Tiered with Overage |
Other considerations
- Dynamic Pricing requires the Orders API.
- Dynamic Pricing in Zuora CPQ is only supported with Quote Studio UI.
- When you use CRM-mapped attributes for Dynamic Pricing, create and save the attribute and its CRM Mapping field before you create the charge and Dynamic Pricing rate card. If the charge and Dynamic Pricing rate card are created before the CRM Mapping is added to the attribute, the CRM Mapping is not recognized in Zuora CPQ during quoting. Updating the attribute mapping alone is not sufficient. You must recreate the charge and its Dynamic Pricing rate card after the CRM Mapping is saved.