Could someone explain why the deal value cannot be set to recurring amount for a deals with attached

HI!

It is quite important to have products attached with deal as it gives possibility for statistics.

Could someone explain why the deal value cannot be set to recurring amounts for a deals with attached products?

If we have a product rental model (products and subscriptions)products would be important to follow, however we cant set the full amount of forecasted revenue on specific deal as the value is divided based on subscription of period. 

What would be a good solution to show the deal value if the product is set on duration (12 months) and the value of the deal is counted annually? Yes subscription model is a good solution as recurring revenue however it is not available with products attached.

 

Many thanks to professionals!

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  • Mike van der Valk
    Mike van der Valk Posts: 4,376 PIPEDRIVE PRODUCT MANAGER
    2500 Comments 25 Likes Second Anniversary First Answer
    edited December 2020 #2

    Hi @Timo Simonlatser 

    Not sure if it will work a 100% for your use case but in this case products aren't necessarily necessary to get statistics from your revenue over time. If you read this article then it also explains how you can see the recurring revenue on the reports.

    Nonetheless, I'll pass on your feedback to our team!

  • Timo Simonlatser_23323
    edited February 24 #3

    Hi,  @Mike van der Valk 

    I got this. My concern is regarding the recurring revenue which can also give output for products. For example if we have different rental packages, we have named these on different as products and can set goals according to them. We also get overview regarding the product/rental item packages.  The recurring amount can not set as a deal value if the product is added to the deal. Why is that so, one is limiting other possibilities? It could be both options available and we could still work with products.

     

    Thanks!

  • Mike van der Valk
    Mike van der Valk Posts: 4,376 PIPEDRIVE PRODUCT MANAGER
    2500 Comments 25 Likes Second Anniversary First Answer
    edited December 2020 #4

    Hi,  @Mike van der Valk 

    I got this. My concern is regarding the recurring revenue which can also give output for products. For example if we have different rental packages, we have named these on different as products and can set goals according to them. We also get overview regarding the product/rental item packages.  The recurring amount can not set as a deal value if the product is added to the deal. Why is that so, one is limiting other possibilities? It could be both options available and we could still work with products.

     

    Thanks!

    Hi @Timo Simonlatser 

    Thanks for that additional information. I wish I could answer the why question here but I can't right now. I'm going to make sure our team sees your feedback right here and hopefully we can think of a solution for this use case. I guess now individual deals with your products is still the best way to go to make sure you can properly report on what you sold, sorry about that.

  • Alex Stueber_20061
    Alex Stueber_20061 Posts: 104
    Elite Solution Provider
    edited December 2020 #5

    Totally agree with @Timo Simonlatser

     It limits a lot of possibilities @Mike van der Valk . I'm trying to find a solution for a similar case, where an advertising agency sells services and we use "products" to attach the value to the Deal. 
    They also need to know how each product "Service" is performing and how many products are attached to each deal and for which agency. So far so good!

    However, they have recurring revenues for some services, and they wish to know that information too.
     And that's where we are stuck at the moment. Using both doesn't work. 
    Any good idea/solution in this case? Or I will have to stop using products to use the Recurring Revenue feature for now? 

     

    Cheers guys and

    Happy Pipedays!

     

  • Tom Howard_18151
    Tom Howard_18151 Posts: 4
    edited December 2020 #6

    We are in a similar situation.  Generally, when we send out quotes, it is for a "rental" package that could be reoccurring for a period of time.  We also have a fixed dollar amount for the install of the equipment (one time charge) and a future removal fee that is a one time charge.  We need to forecast the fixed costs as well as the reoccurring revenue over a course of three to nine months.  How is the best way to approach this?  

  • Mike van der Valk
    Mike van der Valk Posts: 4,376 PIPEDRIVE PRODUCT MANAGER
    2500 Comments 25 Likes Second Anniversary First Answer
    edited February 25 #7

    Hi @Alex Stueber and @Tom Howard 

    Thanks for replying here as well and adding your 2 cents. I wish I had a perfect solution for you right now but I don't. It really depends on your use case whether products or recurring revenue is the way to go and what you find easier/better to report on in Pipedrive or using external tools to report that are hooked up to Pipedrive. That's perhaps the only solution to get it together. To extract the data from Pipedrive and report it somewhere else unfortunately.

    I realise this is far from ideal and will do my best to rally our product managers behind this cause so we can improve it over time. 

  • Tom Howard_18151
    Tom Howard_18151 Posts: 4
    edited February 25 #8

    I may have a work around.

    Our goal was to find a way to forecast revenue and ensure that reoccurring rental is accounted for, along with the fixed costs.  What I did was create a subscription based system and inputted numbers based on when I predicted the rental package would go on rent and the number of cycles that I estimated the equipment to be in the field.  

    On our main sales pipeline, we had several stages that culminated with the final two being "Negotiation" (weighted at %) and then finally as "Work Booked" (weighted at 100%).  We would not set probability or expected date until it reaches the Negotiation stage.  These last two stages were the only stages that had a weighted revenue on them.

    I created another pipeline called "Billable Job".  Once I had a PO on the deal back on the main sales pipeline and it was in the final stage of "Work Booked", I would create a copy of that deal and place it in the other pipeline, "Billable Jobs".   I would then verify the number of cycles for the rental equipment as a reoccurring number with a start date and an expected number of cycles.  Then would add a fixed cost for the install with a date, then a demob cost with an expected date.  At this point, I would mark the "copy" deal as WON, which would throw the revenue into it's proper number of months on the INSIGHTS section of PipeDrive.  This would also reflect the single revenue item's of the install and demob.  

    I would leave the original deal on the main sales pipeline for a couple of weeks so the manager could see the progression of work.  At some point, I would delete the original deal on the main sales pipeline (as it had inaccurate revenue data).  The key here is that you do not mark a deal WON until you get to the Billable Job pipeline.  You do not want to make the mistake of marking the original and the copy as WON or it messes up the data in INSIGHTS.  

    The main sales pipeline was for bringing a job to a sold status and to track our effort in getting there.  The Billable Job pipeline is for forecasting and the operations team to use for billing and equipment monitoring (I am going to have product "X" out on rent for 7 months).  

  • Mike van der Valk
    Mike van der Valk Posts: 4,376 PIPEDRIVE PRODUCT MANAGER
    2500 Comments 25 Likes Second Anniversary First Answer
    edited December 2020 #9

    I may have a work around.

    Our goal was to find a way to forecast revenue and ensure that reoccurring rental is accounted for, along with the fixed costs.  What I did was create a subscription based system and inputted numbers based on when I predicted the rental package would go on rent and the number of cycles that I estimated the equipment to be in the field.  

    On our main sales pipeline, we had several stages that culminated with the final two being "Negotiation" (weighted at %) and then finally as "Work Booked" (weighted at 100%).  We would not set probability or expected date until it reaches the Negotiation stage.  These last two stages were the only stages that had a weighted revenue on them.

    I created another pipeline called "Billable Job".  Once I had a PO on the deal back on the main sales pipeline and it was in the final stage of "Work Booked", I would create a copy of that deal and place it in the other pipeline, "Billable Jobs".   I would then verify the number of cycles for the rental equipment as a reoccurring number with a start date and an expected number of cycles.  Then would add a fixed cost for the install with a date, then a demob cost with an expected date.  At this point, I would mark the "copy" deal as WON, which would throw the revenue into it's proper number of months on the INSIGHTS section of PipeDrive.  This would also reflect the single revenue item's of the install and demob.  

    I would leave the original deal on the main sales pipeline for a couple of weeks so the manager could see the progression of work.  At some point, I would delete the original deal on the main sales pipeline (as it had inaccurate revenue data).  The key here is that you do not mark a deal WON until you get to the Billable Job pipeline.  You do not want to make the mistake of marking the original and the copy as WON or it messes up the data in INSIGHTS.  

    The main sales pipeline was for bringing a job to a sold status and to track our effort in getting there.  The Billable Job pipeline is for forecasting and the operations team to use for billing and equipment monitoring (I am going to have product "X" out on rent for 7 months).  

    That sounds like a well thought through solution that might work for others as well. Thanks for sharing @Tom Howard we really appreciate it!

    @Timo Simonlatser and @Alex Stueber any thoughts?

  • Alex Stueber_20061
    Alex Stueber_20061 Posts: 104
    Elite Solution Provider
    edited December 2020 #10

    Hi @Alex Stueber and @Tom Howard 

    Thanks for replying here as well and adding your 2 cents. I wish I had a perfect solution for you right now but I don't. It really depends on your use case whether products or recurring revenue is the way to go and what you find easier/better to report on in Pipedrive or using external tools to report that are hooked up to Pipedrive. That's perhaps the only solution to get it together. To extract the data from Pipedrive and report it somewhere else unfortunately.

    I realise this is far from ideal and will do my best to rally our product managers behind this cause so we can improve it over time. 

    Hey @Mike van der Valk , thanks for the message.
    I will investigate a bit more and see which way we are gonna go. Would be lovely if PD could let us the product and also let us know decide payment methods based on the that.

    Anyway, always moving forward...
    Happy Pipedays guys!  

  • Alex Stueber_20061
    Alex Stueber_20061 Posts: 104
    Elite Solution Provider
    edited December 2020 #11

    I may have a work around.

    Our goal was to find a way to forecast revenue and ensure that reoccurring rental is accounted for, along with the fixed costs.  What I did was create a subscription based system and inputted numbers based on when I predicted the rental package would go on rent and the number of cycles that I estimated the equipment to be in the field.  

    On our main sales pipeline, we had several stages that culminated with the final two being "Negotiation" (weighted at %) and then finally as "Work Booked" (weighted at 100%).  We would not set probability or expected date until it reaches the Negotiation stage.  These last two stages were the only stages that had a weighted revenue on them.

    I created another pipeline called "Billable Job".  Once I had a PO on the deal back on the main sales pipeline and it was in the final stage of "Work Booked", I would create a copy of that deal and place it in the other pipeline, "Billable Jobs".   I would then verify the number of cycles for the rental equipment as a reoccurring number with a start date and an expected number of cycles.  Then would add a fixed cost for the install with a date, then a demob cost with an expected date.  At this point, I would mark the "copy" deal as WON, which would throw the revenue into it's proper number of months on the INSIGHTS section of PipeDrive.  This would also reflect the single revenue item's of the install and demob.  

    I would leave the original deal on the main sales pipeline for a couple of weeks so the manager could see the progression of work.  At some point, I would delete the original deal on the main sales pipeline (as it had inaccurate revenue data).  The key here is that you do not mark a deal WON until you get to the Billable Job pipeline.  You do not want to make the mistake of marking the original and the copy as WON or it messes up the data in INSIGHTS.  

    The main sales pipeline was for bringing a job to a sold status and to track our effort in getting there.  The Billable Job pipeline is for forecasting and the operations team to use for billing and equipment monitoring (I am going to have product "X" out on rent for 7 months).  

    I still need to test on my side what could work for my scenario.
    I think what @Tom Howard did is really good and gave me some ideas too.

    I will keep you guys posted!

    Cheers guys!
    Happy Pipedays :)