Revenue Cloud Interview Questions

 1) Explain Price Waterfall ?

 The Revenue Pricing Waterfall is a multi-step process/sequence that utilizes different prices and discounts to get us to the Net Price . It is described as a waterfall as it works its way from top to bottom through the different prices and discounts/adjustments.

1. List Price: This is the starting point – the menu price. Let’s say the List Price for Domino’s “ExtravaganZZa” large pizza is $20, as listed in their Price Book.
2. Contracted Price: Domino’s has loyal customers, like the “Pizza Club,” who dine-in every Tuesday. They’ve negotiated a 5% discount on all pizzas through a loyalty program. So, for them, the Contracted Price for the “ExtravaganZZa” isn’t $20 but drops to $19 ($20 minus 5%).
3. Special Price: On occasions, Domino’s offers a special one-day promotion, like “Cheesy Thursday,” where all pizzas have an additional 10% off. This promo is applied on the Contracted Price or the List Price. For the loyal “Pizza Club,” this takes their $19 pizza down to $17.10 for that day.
4. Prorated Price: Suppose one member of the club wants to buy half of an “ExtravaganZZa” and half of a “Veggie Delight” (also priced at $20). Dominos calculates a Prorated Price, where they take the Special Price
   ($17.10) and multiply it by a factor considering the half-and-half scenario, let’s say 0.5 for each half, equating to $8.55 for each half-pizza portion.
5. Regular Price: If there’s no special scenario, the Regular Price kicks in. It’s either the Prorated Price or goes back to the original List Price. So $19 per “ExtravaganZZa.”
6. Customer Price: It is the final price that a direct consumer pays after all applicable discounts and special prices are considered. For the “Pizza Club” members dining on a “Cheesy Thursday,” their Customer Price for an “Extravaganza” would be the special rate of $17.10.
7. Partner Price: The Partner Price is a special rate offered to business partners, usually lower than the standard rate, to accommodate the partners’ profit margins. For instance, a food delivery app ’Uber’ might receive the “ExtravaganZZa” at a Partner Price of $16, allowing them to mark it up for their customers.
8. Net Price: It is the revenue that the seller keeps from the sale after all discounts, allowances, or rebates are deducted. The Net Price reflects the actual revenue the seller makes on the product before their internal costs are subtracted. In the Domino’s case, the Net Price is the amount Domino’s records as revenue for the “ExtravaganZZa” pizza sold to the club member on “Cheesy Thursday”.

2) Derived Pricing :  Derived pricing in Salesforce enables calculating a product's price based on another product's price or quantity, or the overall quote.

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