
CPQ – a tool for dynamic pricing and creating offers
25.10.2022
CPQ is a sales configurator that assists sellers in the definition of customer-specific products and the quick and accurate creation of offer documents. The use of the sales configurator is especially suitable for situations where the process of the product or service is complex or can be modified according to the customer.
CPQ consists of the words configure, price and quote. The configurator therefore combines three different stages of the sales process:
- configuration, i.e. product definition,
- pricing and
- creating the offer itself.

Who is CPQ suitable for?
CPQ is especially suitable for companies where the product to be sold consists of different parts, which can be customized according to the customer. The more complex the product structure itself is, the more CPQ’s features shine compared to traditional product specification and offer documents.
If offers and pricing are currently processed manually or with several different systems, CPQ offers a clear and functional one-time solution to help sellers. CPQ also helps to avoid human errors in the sales process or pricing.
Implementation of CPQ
The implementation of CPQ with a partner begins with a definition. In definition phase the company’s needs for the sales configurator and the product structure are reviewed together. Customizable entity will be created based on that.
In terms of the success of the cooperation, the process requires both parties to be ready to go through the product structure as well as the operation of the process in quite detailed. Based on the product structure, an entity suitable for the company is created. Also how CPQ should be configured in that case is defined.
At Ceili, we have created several different CPQ entities for our customers. We are happy to help you define a suitable solution for managing your product entity.
Featured of CPQ in practice
If, for example, we think about the building process of a customized car, we create a process by defining the different possible components and their compatibility. Broadly speaking, the process can consist of all aspects related to the car and the sales process. Such as the technical construction process or transporting the vehicle to the desired location.
We delve more and more into the defined sub-areas such as in the car building process down to the individual nut. The compatibility of different parts can also be defined in the system. So that components that do not belong together cannot be bundled in the same offer.
The final price is determined particularly precisely, as it is calculated according to each individual component used. The depth of the components that can be created in the product structure is almost endless.
Dynamic pricing can be defined in the process according to the margin percentage when the prices of the products fluctuate. So the seller gets a clear view of both:
- the total price for the company and
- the total price for the customer.
CPQ in a nut shell
- Primarily a sales tool: quick offer creation and clear management enable more deals
- Due to dynamic pricing, suitable for companies of different sizes
- Especially suitable for large product or service ensembles with many changing parts
- Enables certain types of regulations for the sales interface and the product portfolio, which enables products and offers to be processed even with less experience
- Forms price, product and customer information into one clear entity, eliminating human errors in the sales process.
Do you want to know more about the possibilities of CPQ? Contact us and we’ll talk more!
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