Siebel pricing – An Overview

This article will introduce the basics concepts of Siebel Pricing features. Many sections will summarize the Bookshelf and some will give some hints and advice that are not necessarily explained in the Bookshelf. Also, the logic of these articles is really to explain you what you can do with Siebel Pricing. It is not intended to explain you how to do it.


Siebel Pricing has been significantly changed in version 7.8. If you already use Siebel Pricing in earlier versions, there is a chance that you will need to redo most of your customizations.Pricing in versions 8 and 8.1 are essentially the same as 7.8. A few changes have been done (bugs fixed) but very little new functionality.

With the new 7.8 pricing architecture, Siebel has introduced 2 level of pricing: Basic and Dynamic.

Before you can use Siebel Pricing, you must have the correct licence key and follow the instructions provided in the bookshelf (Siebel Pricer Technical Reference). If you plan to use the dynamic Pricing, you must also follow instructions provided in Technical Note # 643 (available on Siebel supportweb -or whatever name Oracle is now giving to their support service-).

Note: If you use the Siebel sample database, Dynamic Pricing is already enabled and is fully functional.

What can we do with Siebel Pricing?

First of all, Siebel Pricing gives a product a price. There is no discount yet. This price is typically provided by the Price List (or Rate List if your product is, for instance, a consultant) Then you can adjust this price with one or more discount. Here is a list of all possible adjustments Siebel can offer:

  • Promotional Price
  • Volume Discount
  • Aggregate Discount
  • Component-based Pricing
  • Product Bundle (this is not technically a price adjustment but it does allow you to give a special price to products, so I include it)
  • Coupons Promotion
  • Bundled Product Promotion (this is different from Product Bundled)
  • Discount Matrix
  • Attribute-Based Pricing
  • Manual discount

That should give already enough rules to support your requirements. Additionally you can customize Siebel Pricing with more rules, here are a few examples that can be achieved without scripting:

  • Aggregate Volume Discounts
  • Contract-Based Discounts
  • Entitlement-Based Discounts
  • Order Value Discounts
  • Account Hierarchy Discounts
  • Payment Type Discounts

Finally you could also create your own pricing rules with good old scripting. Here is a few example: Caped Discount (e.g. sales rep have an annual budget for discount, they choose when, how much and to which customers they want to give a discount, until their annual budget has depleted) Note: “promotion” is used in different types of discount. I will write a separate article about promotions as this is a difficult topic.

Other functionalities:

I will write a specific article on what I believe is the most fantastic tool (long overdue) in Siebel Pricing: Price Waterfall. Unfortunately it is not working in the Vanilla repository but I will explain you how to fix it in a separate article. Price Waterfall is very important for two reasons:

  • It gives end users a detailled overview of all discounts that have been applied to a product
  • It gives developpers, testers a way to easily test that their pricing rules work fine
  • It is (finally) what Accounting/billing systems have always wanted from Siebel: detailled breakdown of the price calculations.

There are other functionalities in Pricing that I don’t plan to discuss for the time being:

  • Price List Transformation
  • Cost, profit, margin
  • Deployment
  • Working with the cache.

Next article: Siebel Pricing: Volume Discount

Change log: Initial version: June 23, 2009 Added price Waterfall, June 24, 2009

2 comments on “Siebel pricing – An Overview”

  1. rav Reply

    Nice Article, In complete article i am intrested to Know aboubt Order value discount.How we can achieve this by simple customization.
    Ex: if customer do the shopping more than 10000 definatly he expects some discount(ex:10%) on that amount irrespective of individual item discount.
    Please share experts thoughts on this.
    thanks in advance.

    • Matthieu Hattab Reply

      Siebel has an out-of -the-box functionality for whole order discount. Search for Spread Discount in the pricing bookshelf.
      Now in your example, measuring how many orders was placed by the customer or any rule involving past orders/buying patterns are best implemented with a data warehouse.
      We implemented solutions where DWH analyses buying patterns (any pattern, the sky is the limit!) which would lead to the creation of a siebel coupon (promotion of type “coupon”). This coupon can subsequently redeemed in a future order.
      For immediate discount, based on these patterns, I don’t have an easy solution, Oracle RTD can definitely provide some help, though.

      Finally, from my experience, accounting/billing systems generally don’t like whole order discount. They want to be able to see the discount at order line level. Accounting want to post the price reduction per product (revenue recognition). This is SOX requirement for USGAAP accounting.

      so, in short, beside Spread discount and to some extend, coupons, there is no easy solution.

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