Use Case: Applying Price Escalator on New Ramp Lines During Renewal of Assets
This use case provides an example of how CPQ applies a Price Escalator to new ramp lines added to a bundle asset during renewal. It covers the prerequisite escalator configuration, the original sale pricing, and the outcome when a fourth ramp line is added on the renewal cart.
- An active bundle asset (Bundle1) with an included option (Option1) and three existing ramp lines exists in the system.
- The CPQ Administrator has configured a Price Escalator on the PLI of both Bundle1 and Option1. The escalator applies a percentage discount to the base price of the first ramp line, stepping up by period as shown below:
Escalator Id
Adjustment Type
Adjustment Amount
Period Number
Adjustment Applies To
Adjustment Source
PE-00000001
% Discount
10
1
Base Price
First Ramp
PE-00000002
% Discount
20
2
Base Price
First Ramp
PE-00000003
% Discount
30
3
Base Price
First Ramp
PE-00000004
% Discount
40
4
Base Price
First Ramp
- The sales representative has the permissions required to access the Installed Products page, initiate a renewal, and modify the renewal cart.
Overview
Enterprise agreements frequently grow mid-term or at renewal as customers expand usage beyond their original contract scope. When a sales representative adds a new ramp line to an existing bundle asset during a renewal, for example, extending a three-period deal into a fourth period, the new line must be priced correctly from the price list, with any configured Price Escalator discounts applied automatically. This use case describes how Conga CPQ handles the pricing of a new ramp line added to a bundle asset during a renewal transaction. CPQ sources pricing exclusively from the Price List Item (PLI) for new ramp lines, applies the applicable Price Escalator discount tier based on the ramp period number, and rolls up the option's net price to the bundle rollup line , regardless of the Default Asset Pricing Indicator setting.
Business Context
The Problem:
A software company sells a cloud platform bundle (Bundle1) with an included option (Option1) under a three-month ramped pricing structure. At renewal, the customer's procurement team requests an additional fourth ramp period to cover an extended rollout. The sales representative needs to add this new ramp line directly on the renewal cart without disrupting the pricing of the three existing Renewed lines. Without a clear pricing rule, the new ramp line could inherit stale asset pricing rather than current PLI pricing, or miss the escalator discount that applies to that period — either outcome producing an incorrect quote. The sales representative also needs confidence that the option price rolls up correctly to the bundle, so the cart total is accurate before submission.
The Solution:
Conga CPQ treats any new ramp line added during an ABO operation as a PLI-priced line, not an asset-priced line. When the sales representative selects the latest ramp from the Price Ramp pop-up and adds the fourth period, CPQ automatically applies the Period 4 Price Escalator (40% discount on base price) to both Bundle1 and Option1, calculates the correct net prices, and rolls the option price up to the bundle rollup line. The three existing Renewed lines are unaffected.
Actors and Roles
- CPQ Administrator: Configures the Price Escalator on the Price List Item (PLI) for both bundle and option products before the renewal transaction begins.
- Sales Representative: Initiates the renewal, reviews the cart, and adds the new ramp line using the Price Ramp pop-up.
- Conga CPQ: Applies the correct escalator tier to the new ramp line, calculates net prices, and rolls up the option price to the bundle automatically.
Product | Net Price | Base Price | Option Price | Start Date | End Date | Line Status |
|---|---|---|---|---|---|---|
Bundle1 | USD 990.00 | USD 900.00 | USD 90.00 | 01/01/2023 | 01/31/2023 | New |
Standard Price | USD 792.00 | USD 720.00 | USD 72.00 | 02/1/2023 | 02/28/2023 | New |
Standard Price | USD 693.00 | USD 630.00 | USD 63.00 | 03/01/2025 | 03/31/2025 | New |
Option1 | USD 90.00 | USD 90.00 | 01/01/2023 | 01/31/2023 | New | |
Standard Price | USD 72.00 | USD 72.00 | 02/1/2023 | 02/28/2023 | New | |
Standard Price | USD 63.00 | USD 63.00 | 03/01/2025 | 03/31/2025 | New |
The sales representative renews the bundle asset and adds a new fourth ramp line on the renewal cart.
- Hover the mouse on Bundle1, click the
icon, and then select Price Ramp.
- From the Please select a Ramp drop-down, select the latest ramp, and then click the
icon next to the bundle.
CPQ adds a fourth ramp line priced from the PLI with the Period 4 escalator (40% discount) applied to both Bundle1 and Option1:Product
Net Price
Base Price
Option Price
Start Date
End Date
Line Status
Bundle1
USD 990.00
USD 990.00
USD 0.00
04/01/2023
04/30/2023
Renewed
Standard Price
USD 792.00
USD 792.00
USD 0.00
05/01/2024
05/31/2024
Renewed
Standard Price
USD 693.00
USD 693.00
USD 0.00
06/01/2025
06/30/2025
Renewed
Standard Price
USD 648.00
USD 594.00
USD 54.00
07/01/2023
07/31/2023
New
Option1
USD 90.00
USD 90.00
04/01/2023
04/30/2023
Renewed
Standard Price
USD 72.00
USD 72.00
05/01/2024
05/31/2024
Renewed
Standard Price
USD 63.00
USD 63.00
06/01/2025
06/30/2025
Renewed
Standard Price
USD 54.00
USD 54.00
07/01/2023
07/31/2023
New
Note:- The fourth ramp line has the line status as New. The new ramp line always gets its value from the price list item (PLI) pricing.
- If Price Escalator was not created for period 4, then the new fourth ramp line in this case will get PLI price which is 100
- CPQ applies Price Escalator on new ramp lines created during ABO operations regardless of the Default Asset Pricing Indicator? setting (true or false) in Config System Properties.
- CPQ applies 40% discount on the base price of the first ramp line of both bundle and option.
- CPQ rolls up the option price of the new ramp line to the new bundle rollup line.