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Scenario for Initiating an SPA Request

This topic provides an example of how SPAs might be used. You might use SPAs differently, depending on your business model. In this scenario, a distributor initiates an SPA request.

A component manufacturing company specializes in the manufacture of a wide variety of electronic components used in personal computers, servers, and diagnostic equipment. It uses licensed distributors to distribute its products.

A sales manager in the licensed distributor learns of a potential opportunity with an OEM that OEM manufactures servers and personal computers and requires a specific type of computer chip that the component manufacturing company manufactures. The sales manager approaches the OEM with an offer of $300 for each chip. the OEM replies that a distributor for one of the component manufacturing company' competitors, is offering an equivalent chip for $275 for each unit. After extensive discussions with the OEM, it is clear to the sales manager that price is the deciding factor in the sale.

The licensed distributor bought the chips from The component manufacturing company for $250 for each unit and resells them for $300. This results in a 20% profit margin. If the licensed distributor were to match the CRMax price of $275, it would only make a 10% profit margin on the deal with the OEM.

To realize a profit margin closer to the usual twenty percent, the sales manager submits a Special Pricing Authorization request using Siebel Partner Portal. He suggests that the component manufacturing company sell the chips at $230 for each unit to the licensed distributor, which then resells them to the OEM at $275 for each unit. This sale would result in a 19.5% profit margin for the licensed distributor.

Using Siebel Partner Manager, a representative from the component manufacturing company reviews the SPA request from the licensed distributor. The representative then suggests that the licensed distributor pay $235 for each unit, and resell them to the OEM for $275. This sale would result in a 17% profit margin.

The sales manager accepts the price suggested by the component manufacturing company and offers to sell the chips at $275 to the OEM. The OEM accepts the offer, and the sale is completed.