HubSpot Ideas

cketelaar

deal amount calculation based on pricing in product library of a deal

Hi,

 

the deal amount can automatically be based on the (recurring) pricing of products in the product library as they are added to a deal.

 

However;

- you can't select the amount to be calculated for the entire deal or for more than 3 years. this becomes a problem when you a) want to add products to a deal with a term length longer than 3 years (yes that happens!) and b) want the amount for entire deal to be calculated including the entire sum of all products times their entire term lenth.

 

is it possible to make two changes here?

- one: created an edit to the drop down in the summery of the Deal Line Item editor so we can select multiple years (1,2,3,5,10,etc) in addition to the default variabels such as monthly, quarterly, annually? it would allow us to calculate deal amounts for deals with products with longer term lenghts

 

- and second: could you add a selecter which allows to not only update the deal amount automatically but also allows to specify what you want to be calculated? for instance;

      - select the revenue or margin for the deal amount  (sales perforamnce is often looked at from a margin perspective

      - select if it includes one-off products without recurring pricing (which are often onboarding packages, etc.)

     - select if it the amount should be calculated, based on the monthly, quarterly or annually amounts?

    - or most importantly, being able to calculate the deal amount, (revenue or margin) based on the entire deal. all products and services for their entire term length!

 

that would be great!

 

9 Replies
MissTipsi
Contributeur de premier rang

Definitely more flexibility needed as to what is the deal "amount". Not sure why at the product level you can include a cost, and thereby have a "margin", but that this margin figure is then not available anywhere for reporting purposes.

 

Being able to include the "term" as a multiplier is also a good call.  

mark_poyser
Participant

@cketelaar @MissTipsi I agree on the flexibility and in some ways lack of calcualtions. I was expecting the term length to affect the Net Price i.e. Unit Price is £100 annually, sell this product to a customer for a Term of 3 months, the Net Price is £25. However, as it stands, the term has no effect on the Net Price, meaning the Unit Price has to be manually calculated.

 

This would be the same for longer term deals. You need the term length to affect the Net Price and thus then affect the Total Deal amount if I am reading your requirements correctly.

CH05
Member

Hi,

 

when Hubspot is calculating the ACV and ARR it is not considering the start date or the term.

In our case we have an onboarding period of lets say 6 months (starting 01.01.2020), in which the customer is paying only €100/month. After that the real contract will start (01.07.2020) for another 3 years with €500/month. 

So for that case we would like to be able to calculate the first year contract value (6*100+6*500) and the ACV of the other years would then be 12*500. At the moment the ACV is calculated with 6*100 + 12*500. Also considerable should be free months offered in the first year.


Furthermore the ARR for the 6 months product is given as 6*100, but as the term is less then 12 months, it is not an annual recurring revenue in that case, only the €500 would be recurring. The €100 are just a monthly recurring revenue over the period of 6 months.

 

It would be great if these calculations could be optimized or if it would be possible to add individually calculated properties on a product, simmilar to the calculated properties on other records.

cketelaar
Member

@mark_poyser @MissTipsi exactly! 

MrB
Participant

This is a must for us, have just found the Deal value uses either product qty x price and all products, or any quote even if you do multiple lines of quote items. This gives a completely false deal value, we often have to quote different volumes and not annual volumes, so quoting for 10ku, 50ku and 100ku will give a deal value for 160ku when in reality it will be one of those. This needs to be way more flexible and definable. At this moment in time this means my pipeline value can be grossly incorrect based on how quotes are entered and can only ever add one product into the deal when you may need to have several as options if a customer hasnt yet decided which they want. This is a major flaw and makes my use of this tool completly invalid, I need to get an accurate picture of the value of my deals to manage my business and spend, thats the whole reason for using this type of tool!

sfaustin
Member

*Using Sales Hub Enterprise*

 

When getting recurring revenue reporting, the amount of the deal isn't updated to reflect the total revenue generated from that recurring payment plan automatically. 

 

I'd like for the deal amount for recurring deals to be updated automatically for each successive month that the deal is still recurring, and then stop being updated once the deal is marked as Churned. 

 

Right now, we have to manually update the deal amount based on the amount generated through that deal, which seems unnecessary if we could calculate the deal amount using variables like the closing date and the Recurring revenue amount.

JForde
Member

Hi There,

 

We have the exact same issue and don't know how to proceed. Did you create a calculation field eg (6X100 + 12 X 500 )/18 X 12

How are you working around this?

LizO
Contributeur de premier rang

In the Deal line item editor (where you create the pricing table for a quote) once you press save, there is a pop up that asks if you want to update the deal amount to match the grand total in this editor feature. [Like This]

 

In my company, the answer is ALWAYS yes, update deal amount! 

 

At the admin level, in settings, I think it would be helpful to have a toggle on/off button where the admin can choose to ALWAYS update the deal amount.  If on, the pop up asking each time a user in our HubID saves a line item in deal record would disappear and the deal amount would just be updated. 

dwalczak
HubSpot Employee

I can see great value in this! In situations where their business-use case is to always update deal amount, this could cause room for error where a new rep might not select that option and then the deal amount is incorrect.