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SKUs & Line Items

The most important part of building a business is an ever-evolving pricing strategy based off of rock solid pricing models. ‍ RevOps is built to allow your sales team the flexibility to sell their products, no matter how you price them. There are endless ways to price SaaS products.

What are SKUs and Line Items?

SKUs, also known as stock keeping units, were traditionally scanned codes to help vendors track the movement of inventory. Businesses would create a unique SKU for each good or service offered to track sales data and know when the product needed to be restocked. ‍ Within, each SKU also represents the products or services that could be sold. When an SKU is added to the Sales Agreement, a line item is created. This line item represents the agreed upon product or service and price which your customer is purchasing. ‍

What's the difference between SKUs and Line Items?

‍ SKUs are a representation of the product or service offered by the business, while line items represent the agreed upon product or service purchased. ‍ The business will list the product at a "recommended" price; this is known as the list price or MSRP (Manufacturer's Suggested Retail Price) of the SKU. However, when the product is sold, it may be adjusted due to the needs of the specific customer, the quantity sold, and the agreement terms. To keep track of the unique pricing, quantity, and other entitlements that may only be available to the customer for that particular agreement, a line item is created. ‍ Since RevOps tracks them separately,

  • Your business may update SKUs without impacting any active deals that are underway.
  • The same SKU may be added to the order form multiple times. By doing so, you create multiple line items which you may then choose to discount differently or offer throughout different periods of the agreement. ‍ While SKUs and Line Items appear almost identical, by making them two separate objects we're able to clearly keep track of what the business offers versus what the customer purchased. Most of the time, Sales Users are interacting with line items while Admins and Operators are managing the SKUs.

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