- Features > Contract Pricing
Contract Pricing for CPQ
Manage enterprise pricing agreements centrally and apply contracted rates automatically on every quote — across all reps, channels, and validity periods.
100%
Contract rate compliance
Automatic
Agreement validity enforcement
Zero
Expired contract rates applied
The Challenge
The Problem with Contract Pricing Compliance
Enterprise manufacturers maintain complex pricing agreements with their largest accounts — long-term contracts with negotiated rates, annual volume commitments, product-specific pricing schedules, and validity periods. Ensuring these agreements are applied correctly on every quote, by every sales rep, across every channel, is a significant compliance challenge.
When contract management lives outside the CPQ system — in a CRM, a spreadsheet, or a contract management platform that sales reps must consult manually — the risk of misapplication is high. Reps quote from memory, use outdated rates, or simply don't know which agreement applies to a given customer and product combination.
Contract pricing errors are commercially costly in both directions. Overpricing a contract customer damages the relationship and creates disputes. Underpricing — applying contract rates to non-qualifying products or extending expired agreements — directly erodes margin. Both types of error are common when pricing agreements are managed outside the quoting system.
For manufacturers with international operations or multiple legal entities, contract management complexity multiplies. Currency, tax treatment, and agreement scope may differ by region, adding layers of complexity that make manual management untenable.
How It Works
How Contract Pricing Works in Mercura
Mercura manages contract pricing agreements as structured data within the platform — linked to customer records, defined by product scope, priced at the line item level, and governed by validity dates. When a quote is created for a contract customer, Mercura automatically identifies applicable agreements and applies the correct contracted rates. Agreements outside their validity window are automatically excluded. For international agreements, multi-currency contract pricing is supported with exchange rate management. Sales operations teams manage all agreement data inside Mercura without developer involvement, with changes taking effect immediately.
What's Included
Key Capabilities
- Customer-linked contract pricing agreements with defined scopes
- Automatic application of contracted rates on quote creation
- Validity period enforcement — expired agreements automatically excluded
- Product and category-level contract rate management
- Multi-currency contract pricing with exchange rate support
- Volume commitment tracking within the contract period
- Contract renewal management with expiry alerts
- Contract compliance reporting across all quotes
The Difference
Before and After Contract Pricing Management
- Reps manually consult contract documents during quoting
- Expired rates applied after contract renewal deadlines
- Contract rates applied to non-qualifying products
- No systematic visibility into contract compliance
- Disputes with customers over incorrectly applied pricing
- Contracted rates applied automatically on customer selection
- Expired agreements automatically deactivated on expiry date
- Contract scope enforced — only qualifying products get contract rates
- Full compliance reporting available at any time
- Zero pricing disputes from agreement misapplication
Real-World Application
Example Use Case: Process Equipment Manufacturer
A process equipment manufacturer manages 65 active long-term supply agreements with their key accounts, each specifying product-level contract prices, annual volume commitments, and validity windows of 1–3 years. Before Mercura, a dedicated pricing administrator spent 20+ hours per week ensuring contract rates were applied correctly across all quotes. After migrating all 65 agreements into Mercura's contract pricing module, application is fully automatic. The pricing administrator now focuses exclusively on agreement analysis and renegotiation strategy. Pricing compliance rate increased from approximately 87% to 100%.
Quote turnaround dropped from 3 days to under 4 hours.
Business Impact
Why Contract Pricing Management Matters
Contract pricing is a promise to your most important customers. Applying it correctly, every time, without exception, is foundational to maintaining those relationships. Mercura makes contract compliance automatic — removing the operational overhead of manual agreement management and eliminating the pricing errors that damage customer trust and erode margin simultaneously.
See Contract Pricing Management in Action
Book a demo to see how Mercura manages and enforces pricing agreements automatically.
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