Configuring Price Escalators
Price Escalator is a new mechanism to define a markup on the different prices for a product. The markup can be defined on a previous or first ramp line on the cart.
On which prices is it applicable?
The markup is applied on the List Price, Base Price or Extended Price.
Applicable for which products?
The Price Escalator can be applied on Bundle and Option products. Please note that the bundle level escalator does not cascade to the option products.
Where is this applied?
The markup is applied on the first or previous ramp line (defined by the Period field) of bundle or option products on the cart.
When is this applied?
For bundle products, the price escalator is applied after the Price Matrices.
For option products, the price of the ramps is calculated depending on the value in the Product Option Price Order field.
Usecase
If the matrix gives a base price is 60 and if the YOY ramp markup has been defined as 10% over base price on period 2 and period 3, then the first ramp line will be $60, second will be $66 and the third will be $72.60.
How is price escalator applied on ramp lines during ABO operations?
CPQ applies Price Escalator on new ramp lines created during ABO operations regardless of the Default Asset Pricing Indicator? setting (true or false). A new ramp line always gets its value from the price list item (PLI) pricing. For more information, see Use Case: Applying Price Escalator on New Ramp Lines During ABO Operations.
