A sales rep at Universal Containers is adjusting pricing for a subscription Product on a new business Quote. The Subscription Term Is 24 months. The Product's Default Subscription Term Is
12 months, The Quantity is 10, The List Unit Price is $120.
If a 10% Volume Discount, 20% Additional Discount, and 5% Partner Discount are applied, what are the values at each step In the standard price waterfall?
A. Regular Unit Price: $108.00
Customer Unit Price: $168.00
Net Unit Price: $156.00
B. Regular Unit Price: $108.00
Customer Unit Price: $86.40
Net Unit Price: $82.08
C. Regular Unit Price: $216.00
Customer Unit Price: $172.80
Net Unit Price: $164.16
C. Regular Unit Price: $216.00
Customer Unit Price: $172.80
Net Unit Price: $164.16
Step 1 — Regular Unit Price:
CPQ pricing waterfall calculates prices per the Default Subscription Term. So the base List Unit Price remains $120 per 12 months.
Apply 10% Volume Discount:
$120 × 0.90 = $108.00
Regular Unit Price = $108.00
Step 2 — Customer Unit Price:
Apply 20% Additional Discount:
$108.00 × 0.80 = $86.40
Customer Unit Price = $86.40
Step 3 — Net Unit Price:
Apply 5% Partner Discount:
$86.40 × 0.95 = $82.08
Net Unit Price = $82.08
Therefore, the price waterfall values per 12-month term are:
- Regular Unit Price = $108.00
- Customer Unit Price = $86.40
- Net Unit Price = $82.08
❌ Why Other Options Are Incorrect:
A → Customer Unit Price can’t be higher than Regular Unit Price.
C → Reflects total pricing for 24 months, not per-term unit prices used in the waterfall.
✅ Bottom Line:
Waterfall steps:
Regular Unit Price = $108.00
Customer Unit Price = $86.40
Net Unit Price = $82.08