Pricing Administration Guide > Setting Up Component-Based Pricing >

About Pricing Models for Component-Based Products

Pricing models are advanced features of Siebel ePricer, which allow you to define your own price adjustments.

This section provides background about the special features of pricing models for component-based products. You refer to this section when you follow the instructions for creating pricing models in Creating Pricing Models and Pricing Factors and in the chapters that follow it.

If a price list includes line items for component-based products, then each of those price list line items may be linked to a pricing model.

A pricing model for a component-based product has the same fundamental structure as other pricing model. You use the same procedures and work with the same Pricing Model Manager forms and functions to create a pricing model for component-based products and for other products.

The key difference is that product components are the line items in a pricing model for a component-based product, while products are the line items in other pricing models. Customizable product pricing models work with the prices of components of a product, whereas other list models work with the prices of products in a price list.

Because the component-based product is a single line item, pricing models for component-based products are processed before other pricing models. All of the price adjustments for a customizable product—including the pricing model price adjustments—must be completed before that product's price can be considered as a list line item, so Siebel ePricer can decide whether other price adjustments apply to it.

With a few exceptions, you can use a customizable product pricing model to adjust the prices of the line items in a customizable product in the same ways that you use a price list pricing model to adjust the prices of line items in a price list.