Think of a Price Book as a catalogue of products and services that your company sells. You might have only one catalogue. In which case, everyone receives an identical copy. Or, your business may have different catalogues, each one tailored to a different customer or prospect segment.

Perhaps not every product or service appears in every catalogue. You might also adjust the price for each product from one catalogue to another.It’s the same with Price Books. 

Your business may, for example, have a Strategic Customer Price Book, a Not-for-Profit Price Book and a European Price Book.  

Standard Price Book

This is the default Price book. The standard price is the baseline price your company charges for a unit of a product or service. You can not add a product to any price books unless the same is first added to standard price book and the base line price is prescibed.

To add standard price to a Product: Open the product, Click on Price Books  > Click Add Standard Price > add price in the List Price.

The Price you add here will get auto populated when you select the product in Sales Orders and Invoices.

Custom Price Books

Custom Price Books allow businesses to create additional Price Books that potentially exclude selected products contained in the Standard Price Book.

Also, the price for each Product in the Custom Price Book may be different to the price in the Standard Price Book.

The price for the Product in each Custom Price Books does not need to be the same. It can vary from one Custom Price Book to another.

To create a new price book Switch to Salesforce Classic Mode > Click on sign available in right hand side > Click Price Books > New

Give the name and click on Active button > Save

To know how to switch to Salesforce Classic Mode refer Basics.

Adding Products to the Custom Price Book:

To add a product to custom price book, open the product, click on Price Books > add Standard Price if not yet added > Click Add to Price Book > Select the Price Book and the currency > give the price in List Price

Custom price book can be associated with locations or can be selected in Sales Orders so that prices in custom price book gets auto populated when the product is selected.