Quote price application

Overview

When creating quotes for your B2B customers, you have two options for how the quoted prices will be applied once the quote is accepted. Understanding these options helps you make strategic pricing decisions that align with your business goals.

The Two Application Methods

Method 1: Apply to B2B Catalog (Future Orders)

When you enable "Apply quote price to future orders," accepting the quote will permanently update your B2B catalog pricing for that specific company location.

How it works:

  • Quote price becomes the new catalog price for this customer

  • All future orders from this company location will use the updated price

  • The price change is permanent until manually adjusted

  • Only affects the specific company location, not other customers

Method 2: One-Time Deal Only

When you leave the option unchecked, the quoted price applies only to the current transaction.

How it works:

  • Quote price is used only for this specific order

  • B2B catalog pricing remains unchanged

  • Future orders continue using your standard catalog prices

  • No permanent price changes are made

Key Differences Comparison

Aspect
Catalog Update
One-Time Deal

Price Duration

Permanent until changed

Single transaction only

Future Orders

Uses new catalog price

Uses original catalog price

Catalog Impact

Updates B2B catalog

No catalog changes

Price Consistency

Consistent pricing going forward

May create pricing confusion

Revenue Impact

Ongoing price reduction

Limited to one order

Administrative Effort

May require future price management

No ongoing management needed

Customer Expectations

Customer expects same price next time

Customer understands it's a special deal

Relationship Building

Creates long-term pricing relationship

Maintains flexibility

When to Use Catalog Updates

Recommended scenarios:

Volume-Based Pricing Adjustments

  • Customer commits to higher order volumes

  • You want to reward loyalty with permanent better pricing

  • Establishing tiered pricing based on customer size

Market Competition Response

  • Matching competitor pricing permanently

  • Adjusting to market rate changes

  • Standardizing pricing across similar customers

Strategic Account Management

  • Key customers requiring consistent pricing

  • Long-term partnership agreements

  • Simplifying future ordering process

Example: A customer orders 1,000 units monthly and requests a volume discount. You quote $8/unit (down from $10) and enable catalog updates. Future monthly orders will automatically be priced at $8/unit without needing new quotes.

When to Use One-Time Deals

Recommended scenarios:

Special Circumstances

  • End-of-quarter sales pushes

  • Clearing excess inventory

  • Customer-specific budget constraints

Testing and Negotiation

  • Testing price sensitivity

  • Trial pricing for new customers

  • One-off promotional opportunities

Maintaining Pricing Strategy

  • Preserving your standard pricing structure

  • Avoiding precedent for price reductions

  • Keeping pricing flexibility for future negotiations

Example: A customer needs 500 units urgently but has budget constraints. You quote $7/unit (down from $10) as a one-time accommodation. Their next order will return to standard $10/unit pricing.

Decision Framework

Ask Yourself These Questions:

1. Is this a pricing strategy change?

  • Yes → Consider catalog update

  • No → Use one-time deal

2. Do you want this price for future orders?

  • Yes → Use catalog update

  • No → Use one-time deal

3. Is the customer expecting ongoing pricing?

  • Yes → Use catalog update

  • No → Use one-time deal

4. Will you be comfortable with this price long-term?

  • Yes → Use catalog update

  • No → Use one-time deal

Best Practices

For Catalog Updates:

  • Document the reason for the price change in your records

  • Set review dates to evaluate pricing periodically

  • Communicate clearly with the customer about the permanent nature

  • Consider volume commitments to justify the price reduction

  • Monitor profitability impact over time

For One-Time Deals:

  • Be explicit about the special nature of the pricing

  • Set clear expectations that future orders return to standard pricing

  • Use sparingly to maintain the "special" nature

  • Document the business reason (inventory clearance, competition, etc.)

  • Follow up appropriately without automatically offering similar deals

Common Mistakes to Avoid

Catalog Updates:

  • Updating prices without considering long-term profitability

  • Not setting volume or commitment requirements

  • Failing to communicate the permanent nature to customers

One-Time Deals:

  • Using too frequently, making them expected rather than special

  • Not being clear about the temporary nature

  • Creating customer confusion about your pricing structure

Managing Customer Expectations

When Using Catalog Updates:

"This pricing reflects our new partnership level and will be your standard rate going forward."

When Using One-Time Deals:

"This is a special accommodation for your current order. Future orders will return to our standard catalog pricing."

Monitoring and Analysis

Track the following metrics:

  • Quote acceptance rates for each method

  • Customer reorder patterns

  • Profitability impact over time

  • Customer satisfaction and retention

  • Sales team feedback on pricing flexibility

Summary

The choice between catalog updates and one-time deals depends on your business strategy, customer relationship goals, and long-term profitability objectives. Catalog updates work best for strategic pricing changes and key account management, while one-time deals are ideal for special circumstances and maintaining pricing flexibility.

Remember: You can always adjust catalog prices later, but customer expectations are harder to manage once set. Choose the method that aligns with your overall pricing strategy and relationship goals with each customer.

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