Managing the Price Waterfall
Price Waterfall is the industry standard for Price and Margin calculation. Price waterfall defines a sequence to handle different prices with the target of reaching the net price.
A well-defined Price Waterfall provides transparency and high visibility of pricing calculation and helps protect margins and avoid incorrect pricing.
Price Waterfall comes with features for transparency and high visibility in pricing calculation and protecting margins, avoiding incorrect pricing. In addition, Price Waterfall defines a sequence to treat different prices with the end goal of arriving at the net price charged to the customer.
Price Waterfall enables administrators to configure the price execution flow and set the groundwork for Conga's Price Waterfall feature to display detailed pricing steps for end-users to visualize. Price waterfall is a tool that provides users with detailed information on how much revenue the company is generating from a transaction and the pocket margin of that transaction. The waterfall is typically represented in a column chart consisting of critical price or margin points and any adjustments that were applied to the list price to arrive at the final price or margin.
The advantages of the price waterfall functionalities are as follows:
- Provides Sales Representatives with the ability to drill down on any price point visible to them so that they can make better decisions and better communicate the deal to customers giving them more leverage during a negotiation.
- Provides approvers and the deal desk with a complete picture of the different price points, preapproved and non-standard adjustments, and costs to better analyze the health of the deal.
- Enables cost accountants and controllers ability to drill down on the cost (if cost is included as part of the price waterfall) to ensure that the deal's profitability is accurately calculated.