Pricing is somewhat of a dark art, particularly with high-value products where the margin size affords a certain degree of flexibility.
As we all know, pricing is not just about what you charge but what the customer perceives the value to be. And this perceived value constantly fluctuates and varies between individual customers.
So what are sellers to do when the same price can feel like a steal one day and a total ripoff the next? Simple answer: implement the right pricing software.
Advanced pricing software aims to control many of the variables that determine optimal prices. It considers crucial factors such as purchase history, inventory levels, raw material costs, and competitor pricing, optimizing prices dynamically (in real-time) to maximize revenue and margin.
Leading configure price quote CPQ software does all this… and more. In addition to dynamic pricing, it lets sellers provide a fully immersive and highly engaging buying experience that increases the perceived quality of products and enables them to increase prices further.
If you’re looking to transform how you price configurable products–however complex they are–this article’s for you. We’ll delve into the power of Configure Price Quote CPQ software and how it revolutionizes pricing accuracy, efficiency, and effectiveness.
Let’s get started!
What is CPQ Pricing Software?
At its essence, CPQ software streamlines and automates the process of configuring, pricing, and generating quotes. With CPQ software, sales representatives are guided through prompts to gather customer requirements. They are then presented with the optimal configuration, accurate pricing, and a polished quote, saving time and reducing the risk of errors.
CPQ automation saves salespeople time and eliminates mistakes, resulting in a fast, frictionless sales cycle. The faster your sales cycle, the more revenue you make. Why? Because your company can close more deals in a shorter period and offer a superior, more responsive customer experience, increasing satisfaction and loyalty.
Top 10 Reasons to Choose Epicor CPQ
This quick-reading download walks you through the top 10 reasons that customers choose us for their CPQ. From our 2D/3D visualization and robust rules engine technology to our great people, learn about the qualities that make Epicor CPQ used and loved by over 10,000 customers globally.
What Are CPQ Pricing Rules?
Wondering how CPQ software calculates the appropriate price for each customer? It’s all thanks to the magic of CPQ pricing rules. These rules, powered by algorithms and constrained by pre-determined conditions and variables, automatically calculate prices according to information entered into the configurator.
The strength of your CPQ software is proportional to the number of variables it can consider in its pricing calculations and the complexity of pricing strategies and scenarios it can handle. Many solutions will consider product features, volume discounts, product bundling, customer location, customer-specific agreements, competitors’ prices, and more when calculating a price.
Here are some examples of what you can do with CPQ pricing rules:
- Differentiate prices for different sales channels, such as dealers, distributors, or e-commerce customers.
- Determine one-time, recurring, or subscription prices.
- Automate discounts based on margins, promotions, and other conditional or temporary pricing scenarios.
- Adjust prices and promotions based on user-inputted start and end dates.
- Calculate prices for various units of measurement, such as per unit, per case, per dozen, per ton, etc.
- Provide clear and concise explanations of how prices were calculated–in words and numbers.
- Account for thousands of product features and attributes, each with a complex set of restrictions and dependencies.
No-Code Pricing Rules
CPQ pricing rules are complex. But they don’t have to be complicated. At least not with Epicor CPQ’s no-code programming language called Snap.
Snap lets users with zero technical know-how create and maintain highly advanced pricing rules and logic without writing code. They just “Snap” statements together, and the solution validates the rules in real time.
Integrations with ERP and other back-office systems mean CPQ always has access to the latest pricing data. Everything is stored in a single centralized repository, improving data quality and consistency and facilitating greater accessibility and collaboration.
The ability to democratize pricing logic and create rules in-house is a game-changer, especially for companies with smaller IT teams. It means sellers can experiment with new pricing strategies and change prices on the fly in response to shifting internal or external conditions.
This agility keeps companies that use Epicor CPQ one step ahead of the market and saves them the burden, frustration, and expense of working with third-party developers.
Dynamic Pricing + Visual Configuration: A Winning Combination
Visual product configuration offers customers (and sales reps) a user-friendly and interactive design and pricing experience that increases deal sizes, margins, and conversion rates. It’s no exaggeration to say: it revolutionizes how complex configurable products are sold.
Instead of reading product descriptions, looking at generic product shots, and relying on salespeople to answer questions, customers can design products independently by interacting with 3D visuals within an intuitive interface. Their product comes to life as they select different options, and a price is recalculated in real-time. This clarity and pricing transparency builds trust and accelerates decision-making leading to more positive outcomes for buyers and sellers.
Sellers can choose whether to display the price to the customer or keep it hidden on the backend. The first option gives buyers the autonomy they want from their buying journey. The second choice is the right one for sales teams with greater pricing flexibility who need to subject quotes to a formal approval process.
Configure price quote software can automate these workflows, routing prices directly to designated approvers, enabling them to approve or reject prices and add comments with just a few clicks. This degree of automation increases efficiency, accountability, and collaboration.
Raise Your Prices with Visual Product Configuration
Visual product configuration is a powerful differentiator. It signals buyers that your company is a digital leader in your sector. The more “advanced” your configurator’s front end, the more it increases your brand value. And the higher your brand value, the more you can charge for your products (without sacrificing sales volume.)
If you want to take your sales experience to another level, you can leverage augmented and virtual reality in your configuration experience. These cutting-edge technologies provide a more immersive and interactive experience. Users can visualize products in real-world settings or a virtual environment, making the configuration process more engaging and entertaining, maintaining attention, interest, and decision-making.
CPQ revolutionizes how companies price their products through the use of complex algorithms, artificial intelligence, and automation. It calculates the exact amount each buyer will pay in just seconds, considering market conditions and your solution’s value to that specific customer at that precise time. This dynamic approach leads to efficiency, higher margins on every sale, and a superior customer experience.