CPQ Software (configure, price, quote) helps companies streamline their sales process for customizable and complex products. This is achieved through 2D and 3D visualizations, up-to-date and automated pricing, and efficient quote generation. These solutions are used primarily in the manufacturing industry, including discrete, industrial, and automotive manufacturers. Using our advanced review methodology we tested the market’s most popular CPQ systems and reviewed them below.
- Infor CPQ: Best for Large Discrete Manufacturers
- Vendavo CPQ: Best Pricing Tools
- Revalize CPQ: Best for Industrial Equipment Manufacturers
- Oracle CPQ: Best for Automotive Manufacturers
- QuoteWerks: Best Quoting Tools
Infor CPQ - Best for Large Discrete Manufacturers
Why we chose it: One of the reasons we found Infor CPQ well-suited for discrete manufacturers is its visual configuration tool. It provides companies with the ability to configure complex products such as furniture or computers within an augmented reality experience. It supports 2D parametric drawings for configurations and 3D CAD assemblies for modeling and creation. Customers and sales representatives can then view these visualizations in real time, giving buyers an exact view of the product.
Infor CPQ caters to large companies by supporting enterprise integration out of the box. It connects with Infor ERP products, Salesforce, and Microsoft Dynamics CRM for sales and ERP integration. Also, it syncs with popular CAD systems like SolidWorks and Autodesk for streamlined modeling. These integrations help enterprise-level discrete manufacturers manage processes from quoting and ordering to modeling and BOM creation.
Vendavo CPQ - Best Pricing Tools
Why we chose it: We found Vendavo CPQ effective for manufacturers because of its Pricepoint tool. This product is included in the CPQ suite and helps companies identify and implement pricing strategies for complex products globally or locally. Pricing can even be simulated to ensure optimal and competitive regional and industry rates. The tool’s granular-level detail can help manufacturers measure change impact and analyze revenue and profit margins.
While Vandavo’s pricing features are effective, it also offers strong sales and customer tools to help companies land the final sale. Businesses can create branded proposals and accurate customer quotes, helping eliminate incorrect or outdated pricing. Sales reps can get deals done more efficiently with automated approval workflows, so inefficient review processes do not slow deals.
We recommend Vendavo CPQ for larger manufacturers, as small businesses may find it overly complex for their needs.
Revalize CPQ - Best for Industrial Equipment Manufacturers
Why we chose it: Revalize CPQ offers industry-specific features to industrial equipment manufacturers to help streamline the CPQ process. First, we like its advanced rules engine, which helps simplify complex configurations common for heavy machinery and equipment production. These complexities can cause errors, but the rules engine can help create accurate configurations for exact customer requirements.
We also appreciate Revalize CPQ’s automated BOM and smart numbering system. Companies can use the automated BOM feature to create accurate product information and streamline production. The part numbering is also automated, assigning part numbers with data for consistency and traceability, which is ideal for industrial equipment manufacturers with tens of thousands of parts to account for.
One drawback of the system is the high initial cost and time investment in setting it up and learning it.
Oracle CPQ - Best for Automotive Manufacturers
Why we chose it: We like Oracle CPQ for automotive manufacturers because it offers a wide range of features to streamline processes. Specifically, its configurations module allows for automated workflows for accurate and efficient product configurations. It has built-in intelligence that adapts as products change over time for product accuracy. Customers can access self-service portals to customize their configurations and review them before purchase.
We also appreciate Oracle CPQ’s transparent pricing model and extensive integration options. The system costs $240/user/month and includes configuration, selling, pricing, and quoting tools well-suited for enterprise automotive manufacturers. However, businesses must still speak with a sales rep for exact quoting and setup costs. Oracle CPQ can be integrated with nearly all leading CRM systems, such as Salesforce and Oracle ERP systems, like NetSuite.
QuoteWerks - Best Quoting Tools
Why we chose it: QuoteWerks is a CPQ system that automates and streamlines pricing and quoting for faster sales. We found its quoting system effective for manufacturers, as it uses CRM data to autofill customer information. Products can include spreadsheets and pictures, and the configurator gives users a product list for efficient processes. QuoteWerks even includes a centralized quote storage system to house documents for easy access.
QuoteWerks works well for small businesses due to its affordable pricing. The standard edition is $15/user/month and includes quotes, orders, and invoices. Because of this, we wouldn’t recommend this system for complex manufacturers or large companies with large data sets.
In business, CPQ stands for “Configure, Price and Quote,” the practice of sellers using special pricing algorithms and rules to generate accurate quotes for complex or configurable products.
What is Configure, Price, and Quote (CPQ) Software?
CPQ software is a digital sales solution for sellers who need a way to automate complex quotes for their products. As the name suggests, this quote-to-cash software operates in three parts: configuring complex data, pricing products, and generating quotes.
Configuration comes first, as you need to include different variables to determine your product pricing. Next, automate those prices by setting specific rules in your system. Finally, you build a price quote for your product.
Without a CPQ system, you would have to do all of this manually. By using software, you can expedite the whole process. Quotes that would have taken days or weeks to build can be generated in minutes. Stay focused on your sales process by getting configurable price quote software.
Key Features
- Product configurations: Use a configurator to see all the different variations of your product. See visual representations of your complex products in 2D and 3D.
- Price rules engine: Automate pricing rules for your products based on specific rules you set.
- Automated quote generator: Create new quotes with complex pricing through an automated generator.
- Price and quote management: Keep records of previous pricing rules and previously sent quotes.
- Multi-channel strategizing: Ensure your prices remain consistent across multiple sales channels.
- Guided selling: Build questionnaire forms for potential customers to suggest related upsell opportunities within sales quotes.
- Analytics reporting: Compile your sales and pricing data to use in reporting, forecasting, and budgeting.
CPQ Software Benefits
There are many excellent benefits to using CPQ software at your business:
Faster Quote Generation
Building an accurate quote takes time, especially if you have a lot of variables at play. Manually calculating every single price quote takes a lot of effort you could be using elsewhere. A CPQ software automates the quoting process, even for complex products, so you and your sales reps can get faster price results.
Using a software algorithm to generate complex quotes has another benefit: fewer errors! A price rules engine does all the work for you. You can automatically adjust total prices based on individual variables like size, colors, accessories, shipping, and more. As long as you have your business rules set, you can get an accurate quote for your most complex products generated in a fraction of the time of your manually calculated quotes.
Lower Production Costs
Complex products are often more expensive to produce than their simple counterparts. Reviewing and streamlining the manufacturing process is one way to lower production costs. While an ERP suite might help with some resources, you need a more specific tool. 2D and 3D visualization applications show you both static and interactive images of your products so you can find opportunities for improvement. You might find a way to use less of one specific material. Or you could find a different assembly order that actually saves time.
A smart CPQ process is particularly helpful to small businesses that operate with razor-thin margins. If there is any way to shorten the production lifecycle, you need to use it. A product configurator tool is designed to help you see these solutions. In fact, software companies are starting to use artificial intelligence (AI) to enhance how these CPQ tools operate.
Create Upsell and Bundling Opportunities
An easy way to make more money from your products is to upsell related accessories. However, this means creating a new quote for all of the additional costs. With complex pricing, you can offer product bundles without worrying about manually calculating the combined price. You can even quote special price deals for these bundled product packages to encourage more combined sales. The bigger the deal size, the more profit you can enjoy.
In addition to upselling bundles, you can use guided selling and customer relationship management (CRM) systems to aim specific products at audiences who are more likely to buy than others. Start by using guided selling modules to create custom questionnaires for your customers in order to gauge what other products they’re interested in buying. You can use this data to create new bundles of related accessories. Not only do you get more profits from these upsells, but you can also enhance the customer experience by anticipating their needs.
Accurate Quote-to-Cash Tracking
Quote-to-Cash (QTC) is the tracking of the sales cycle from the moment an order is made until the final purchase goes through and the invoice is paid. The more accurate your QTC data, the more useful information you’ll have to guide your future sales tactics. With CPQ solutions, you can better track the entire QTC sales cycle.
For example, maybe your tracking reveals a high abandonment rate on a specific product. You review your QTC data and find the product tends to sell better when paired with certain accessories. You can now use this information to ensure the product is always paired up with related accessories to increase the likelihood of sales and lower abandonment.
Real-Time Competitive Pricing
eCommerce stores have made it more important than ever to have fast turnaround times on sales quotes. Has a competitor just announced a special sale? You can calculate a similar rate and adjust your current pricing to stay competitive by using a CPQ tool. There’s no need to dig through old spreadsheets to find sales rates - just access them from anywhere. Update your rules engine to account for the current price difference and enjoy accurate, up-to-date quotes.
Does your eCommerce business work across multiple channels? CPQ solutions have omnichannel capabilities to reflect accurate pricing across the web.
Pricing Guide
The best CPQ software is one that meets your budget. CPQ software prices mainly depend on how many users you have and the scope of your enterprise. Software-as-a-service (SaaS) prices start at $19 per month per user and go up to $250 per month per user. Both SaaS and perpetual licenses often include limited IT support, at least for the first year of service. However, implementation and training services are generally not included.
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