--- title: CPQ Archives description: Home > CPQ What is Configure Price Quote (CPQ)? CPQ helps you: Configure complex products and customizations quickly Set prices using rules and data from market rates Streamline sales processes Manage discounts and promotions Increase sales opportunities and boost revenue Improve collaboration and customer response times Automate administrative tasks Create proposals, quotes and invoices Collect and analyze data on customers to improve performance Integrate with other software to streamline sales cycles Configure complex products and customizations quickly Gone are the days of the Ford Model T with very little wiggle room for customization and modifications. Today, customization is all the rage. That’s where the C in CPQ (Configure Price and Quote) comes into play. Configure modified products for your customers based on pre-set rules and constraints without going back and forth with engineers or searching old quotes for examples. Many CPQ systems provide real-time 2D or 3D visualizations based on different modifications. Certain solutions allow customers to visit your website, select customizations, and even request quotes. Set prices using rules and data from market rates Unlike Jessie J, many customers do care about price tags. So, how do you ensure the price is right? A pricing engine will help find the sweet spot by considering your pricing rules, production costs and market forces. Input your pricing rules based on past orders, profit margins and variable pricing from customizations. Automate contracted pricing using previous quotes, create multiple price lists and optimize price management with bulk pricing. Streamline sales processes Browsing through old files, spreadsheets and emails for customer information, past orders and pricing details is an unnecessary time expenditure. Use centralized data, pricing rules and approval workflows to get from lead to sale as quickly as possible. Manage discounts and promotions Set pre-approved discounts and price margins so sales reps can send quotes without waiting for manager responses. Create approval workflows to alert upper management when discounts or prices need to be manually approved and send reminders when approval deadlines pass. Collaborate with other departments to ensure margins are workable. Increase sales opportunities and boost revenue Sunk cost fallacy may not be ideal when contemplating switching from Android to iPhone, but it can help boost upselling. Use AI-powered analytics to add pop-up upsell and cross-sell suggestions and increase sales at checkout. Identify renewal opportunities and receive reminders when customers may need to reorder. Improve collaboration and customer response times Historically, it takes nearly two days for companies to respond to a lead. Cut that time down using in-document comments, user tags and collaboration tools to help team members communicate contextually and eliminate missed emails or lengthy back-and-forth email conversations. Create customized product catalogs and bundles to allow customers to request accurate quotes without involving sales reps. Automate administrative tasks Did you know sales reps only spend 28% of their time actually selling? Use automation and auto-fill to complete data entry, contract drafting and pricing updates. Automate contract renewals, email follow-ups and price limits for approvals. Create customized proposals, quotes and invoices No graphic designer? No problem. Use in-built, customized document templates to create customized proposals, quotes and templates with your logo and brand colors. Save time with auto-filled deal requirements, customer details and quote-to-order features. Drag and drop quote sections, terms and conditions and convert quotes to orders and invoices. Collect and analyze customer data to improve performance Like alchemists of old, sales reps are always searching for the winning formula. Use CPQ reporting features and CRM integration to determine what works for your team. Compile data on popular prices, discounts and modifications into reports to replicate successful quotes and pricing strategies. Identify purchasing patterns using historical data to recommend relevant products and exploit upselling opportunities during reorders. Integrate with other software to improve sales cycles Software isn’t an island. Integration with ERP, CRM, MES and supply chain management software helps departments identify working margins, sales opportunities, available inventory and possible configurations for smooth sailing. FAQs What does CPQ stand for? CPQ is an acronym for Configure, Price and Quote defined as a system that configures complex products with accurate pricing to create proposals and quotes. What is CPQ software? CPQ software is a tool that helps companies streamline sales processes using pricing rules and engines, product configuration and quote creation while factoring multiple market and production variables into the equation. Can CPQ benefit my business? If you sell complex, highly customizable goods or multiple products CPQ software can benefit your business. It’s also helpful for companies with complex pricing structures, B2B industries and businesses with a high number of quote line items. Are there best practices to follow for CPQ implementation? Successful CPQ implementation depends on clearly understanding your goals, business objectives and what your vendor can provide. Use the following steps to guide your implementation strategy: Define measurable goals and KPIs you want to achieve. Identify the features you need. Choose your deployment method. Commit to training and adoption. Focus on data management to optimize performance. Measure your progress. Improve processes and gaps in usage. How do I select a CPQ system? Right off the bat, you need to understand your business needs clearly. Sometimes the best way to get answers is to ask the right questions. Here’s an excellent place to start: Do you already have CRM with some CPQ capabilities, or are you looking for CPQ solutions to solve this problem via a native system or integration? What is your budget? How complex is your product? Will a rules-based configuration work for you, or do you need something constraints-based? Is your product catalog expanding? Will you need to add multiple products and services to your quote? Some software starts to slow down with quotes of more than 1,000 line items, so test this feature during the demo. Do you need AI-based capabilities for upselling and cross-selling or pricing recommendations? Are you looking for software with integrated e-commerce channels? Want a more detailed deep-dive into what your company needs? Check out our free requirements template. Have a question about which software vendor is right for you? We’d love to help! Contact our team for individualized recommendations by emailing support@selecthub.com or calling 855-850-3850. Read More Resources for Software Selection CPQ Software In-Depth Comparison Report CPQ Software Requirements Template Sales Force Automation Most Popular Articles CPQ Popular posts The Top 8 CPQ Features & Requirements Checklist 11 Benefits CPQ Software Brings To Your Business What Is Dynamic Pricing? A Comprehensive Guide What Is Penetration Pricing? A Comprehensive Guide To Goals, Pros, Cons, Examples, Usage and Implementation Tips Price Optimization: A Comprehensive Guide Recent Articles CPQ Software Recent Posts11 Benefits CPQ Software Brings To Your BusinessWhat Is Quote-To-Cash? A Comprehensive GuideThe Ultimate Infor CPQ Review For 2026What Is Penetration Pricing? A Comprehensive Guide To Goals, Pros, Cons, Examples, Usage and Implementation TipsPrice Optimization: A Comprehensive Guide See More Research and Reports Quickly find the best assets available for your CPQ selection research here. Our Market Research Analysts have clearly summarized and reviewed each asset to help you select only the assets you need. Find the Best CPQ Software for Your Sales Quotes Process: Top Platforms and Pricing Confidence Comes from Data CPQ software selection is complex and beset with problems for both IT buyers and solution providers. We do three things to make it fast and simple: FREE Software Selection Platform Our platform provides best-practices, including requirements templates & vendor comparisons, to help you make the right decisions for your unique needs, in a fraction of the time. Try it FREE. Start Selecting Software Aggregated Reviews We have collected every software review available online, crunched every last word using our proprietary Sentiment Analysis algorithms, all so we can tell you how a software product is viewed in its marketplace, retrospectively. Get CPQ Software Reviews Professional Analysis We relentlessly collect and analyze data about software, then compile and share it so every company has the same access to the information. The information we gain is then used in our Software Selection platform to help you find the right software. See Analyst’s Top CPQ Software Picks Your Guides Our industry journalists proudly distill the helpful information you read on SelectHub, always on the mission to share what matters so you can make your best decisions independently. CPQ articles are written and edited by: Zachary Totah Content Manager As SelectHub’s Content Manager, Zachary Totah leads a team of more than 35 writers and editors in their quest to provide content that helps software buyers find the right system for their company. Show More Joe Evans Editor and Senior Market Analyst Joe Evans is an Editor and Senior Market Analyst at SelectHub with expert experience crafting top-notch written digital content for niche online brands all over the internet. Show More Christina George Technical Content Writer A Technical Content Writer at SelectHub, Christina George covers home health and MES. Formerly a food writer, copywriter and social media sleuth, she has a soft spot for a quality pun. Show More Most Recent Articles --- [Home](https://www.selecthub.com/) \> CPQ ![What Is CPQ?](https://www.selecthub.com/wp-content/uploads/2022/10/CPQ-Research-Center.jpg) # What is Configure Price Quote (CPQ)? ## CPQ helps you: * Configure complex products and customizations quickly * Set prices using rules and data from market rates * Streamline sales processes * Manage discounts and promotions * Increase sales opportunities and boost revenue * Improve collaboration and customer response times * Automate administrative tasks * Create proposals, quotes and invoices * Collect and analyze data on customers to improve performance * Integrate with other software to streamline sales cycles ### Configure complex products and customizations quickly Gone are the days of the Ford Model T with very little wiggle room for customization and modifications. Today, [customization is all the rage](https://www.nytimes.com/2020/03/18/business/customization-personalized-products.html). That’s where the C in CPQ (Configure Price and Quote) comes into play. Configure modified products for your customers based on pre-set rules and constraints without going back and forth with engineers or searching old quotes for examples. Many CPQ systems provide real-time 2D or 3D visualizations based on different modifications. Certain solutions allow customers to visit your website, select customizations, and even request quotes. ### Set prices using rules and data from market rates Unlike Jessie J, many customers do care about price tags. So, how do you ensure the price is right? A pricing engine will help find the sweet spot by considering your pricing rules, production costs and market forces. Input your pricing rules based on past orders, profit margins and variable pricing from customizations. Automate contracted pricing using previous quotes, create multiple price lists and optimize price management with bulk pricing. ### Streamline sales processes Browsing through old files, spreadsheets and emails for customer information, past orders and pricing details is an unnecessary time expenditure. Use centralized data, pricing rules and approval workflows to get from lead to sale as quickly as possible. ### Manage discounts and promotions Set pre-approved discounts and price margins so sales reps can send quotes without waiting for manager responses. Create approval workflows to alert upper management when discounts or prices need to be manually approved and send reminders when approval deadlines pass. Collaborate with other departments to ensure margins are workable. ### Increase sales opportunities and boost revenue Sunk cost fallacy may not be ideal when contemplating switching from Android to iPhone, but it can help boost upselling. Use AI-powered analytics to add pop-up upsell and cross-sell suggestions and increase sales at checkout. Identify renewal opportunities and receive reminders when customers may need to reorder. ### Improve collaboration and customer response times Historically, it takes nearly [two days for companies to respond to a lead](https://www.forbes.com/sites/kenkrogue/2012/07/12/the-black-hole-that-executives-dont-know-about/). Cut that time down using in-document comments, user tags and collaboration tools to help team members communicate contextually and eliminate missed emails or lengthy back-and-forth email conversations. Create customized product catalogs and bundles to allow customers to request accurate quotes without involving sales reps. ### Automate administrative tasks Did you know sales reps only spend [28% of their time actually selling](https://www.salesforce.com/news/stories/sales-research-2023/)? Use automation and auto-fill to complete data entry, contract drafting and pricing updates. Automate contract renewals, email follow-ups and price limits for approvals. ### Create customized proposals, quotes and invoices No graphic designer? No problem. Use in-built, customized document templates to create customized proposals, quotes and templates with your logo and brand colors. Save time with auto-filled deal requirements, customer details and quote-to-order features. Drag and drop quote sections, terms and conditions and convert quotes to orders and invoices. ### Collect and analyze customer data to improve performance Like alchemists of old, sales reps are always searching for the winning formula. Use CPQ reporting features and [CRM integration](https://www.selecthub.com/customer-relationship-management/cpq-strategies/) to determine what works for your team. Compile data on popular prices, discounts and modifications into reports to replicate successful quotes and pricing strategies. Identify purchasing patterns using historical data to recommend relevant products and exploit upselling opportunities during reorders. ### Integrate with other software to improve sales cycles Software isn’t an island. Integration with [ERP](https://www.selecthub.com/c/erp-software/), [CRM](https://www.selecthub.com/c/crm-software/), [MES](https://www.selecthub.com/c/mes-software/) and [supply chain management software](https://www.selecthub.com/c/supply-chain-management-software/) helps departments identify working margins, sales opportunities, available inventory and possible configurations for smooth sailing. ## FAQs ### What does CPQ stand for? CPQ is an acronym for Configure, Price and Quote defined as a system that configures complex products with accurate pricing to create proposals and quotes. ### What is CPQ software? CPQ software is a tool that helps companies streamline sales processes using pricing rules and engines, product configuration and quote creation while factoring multiple market and production variables into the equation. ### Can CPQ benefit my business? If you sell complex, highly customizable goods or multiple products CPQ software can benefit your business. It’s also helpful for companies with complex pricing structures, B2B industries and businesses with a high number of quote line items. ### Are there best practices to follow for CPQ implementation? Successful CPQ implementation depends on clearly understanding your goals, business objectives and what your vendor can provide. Use the following steps to guide your implementation strategy: * Define measurable goals and KPIs you want to achieve. * Identify the features you need. * Choose your deployment method. * Commit to training and adoption. * Focus on data management to optimize performance. * Measure your progress. * Improve processes and gaps in usage. ### How do I select a CPQ system? Right off the bat, you need to understand your business needs clearly. Sometimes the best way to get answers is to ask the right questions. Here’s an excellent place to start: * Do you already have CRM with some CPQ capabilities, or are you looking for CPQ solutions to solve this problem via a native system or integration? * What is your budget? * How complex is your product? Will a rules-based configuration work for you, or do you need something constraints-based? Is your product catalog expanding? * Will you need to add multiple products and services to your quote? Some software starts to slow down with quotes of more than 1,000 line items, so test this feature during the demo. * Do you need AI-based capabilities for upselling and cross-selling or pricing recommendations? * Are you looking for software with integrated e-commerce channels? Want a more detailed deep-dive into what your company needs? Check out our free [requirements template](https://pmo.selecthub.com/cpq-software-requirements-onsite/). Have a question about which software vendor is right for you? We’d love to help! Contact our team for individualized recommendations by emailing [support@selecthub.com](mailto:support@selecthub.com) or calling [855-850-3850](tel:855-850-3850). Read More ## Resources for Software Selection [CPQ Software ](https://www.selecthub.com/c/cpq-software/) [In-Depth Comparison Report ](https://pmo.selecthub.com/request-custom-scorecard/?category=CPQ%20Software) [CPQ Software Requirements Template ](https://pmo.selecthub.com/cpq-software-requirements-onsite/) [Sales Force Automation](https://www.selecthub.com/category/sales-force-automation/) ## Most Popular Articles CPQ Popular posts * [The Top 8 CPQ Features & Requirements Checklist](https://www.selecthub.com/cpq/cpq-features-requirements/) * [11 Benefits CPQ Software Brings To Your Business](https://www.selecthub.com/cpq/cpq-benefits/) * [What Is Dynamic Pricing? A Comprehensive Guide](https://www.selecthub.com/cpq/dynamic-pricing/) * [What Is Penetration Pricing? A Comprehensive Guide To Goals, Pros, Cons, Examples, Usage and Implementation Tips](https://www.selecthub.com/cpq/penetration-pricing/) * [Price Optimization: A Comprehensive Guide](https://www.selecthub.com/cpq/what-is-price-optimization/) ## Recent Articles CPQ Software Recent Posts * ### [11 Benefits CPQ Software Brings To Your Business](https://www.selecthub.com/cpq/cpq-benefits/) * ### [What Is Quote-To-Cash? A Comprehensive Guide](https://www.selecthub.com/cpq/quote-to-cash/) * ### [The Ultimate Infor CPQ Review For 2026](https://www.selecthub.com/cpq/infor-cpq-review/) * ### [What Is Penetration Pricing? A Comprehensive Guide To Goals, Pros, Cons, Examples, Usage and Implementation Tips](https://www.selecthub.com/cpq/penetration-pricing/) * ### [Price Optimization: A Comprehensive Guide](https://www.selecthub.com/cpq/what-is-price-optimization/) [See More](#moreArticles) ## Research and Reports Quickly find the best assets available for your CPQ selection research here. Our Market Research Analysts have clearly summarized and reviewed each asset to help you select only the assets you need. [![Find the Best CPQ Software for Your Sales Quotes Process: Top Platforms and Pricing](https://www.selecthub.com/wp-content/uploads/2024/02/Find-the-Best-CPQ-Software-2024.jpg)Find the Best CPQ Software for Your Sales Quotes Process: Top Platforms and Pricing](https://www.selecthub.com/best-cpq-software-for-your-sales-quotes-process/) ## Confidence Comes from Data CPQ software selection is complex and beset with problems for both IT buyers and solution providers. **We do three things to make it fast and simple:** ### FREE Software Selection Platform Our platform provides best-practices, including requirements templates & vendor comparisons, to help you make the right decisions for your unique needs, in a fraction of the time. Try it FREE. [Start Selecting Software ](https://www.selecthub.com/about/start-free-selection-project-site/) ### Aggregated Reviews We have collected every software review available online, crunched every last word using our proprietary Sentiment Analysis algorithms, all so we can tell you how a software product is viewed in its marketplace, retrospectively. [Get CPQ Software Reviews ](https://www.selecthub.com/c/cpq-software/) ### Professional Analysis We relentlessly collect and analyze data about software, then compile and share it so every company has the same access to the information. The information we gain is then used in our Software Selection platform to help you find the right software. [See Analyst’s Top CPQ Software Picks ](https://www.selecthub.com/c/cpq-software/) ## Your Guides Our industry journalists proudly distill the helpful information you read on SelectHub, always on the mission to share what matters so you can make your best decisions independently. CPQ articles are written and edited by: [ ![Zachary Totah](https://www.selecthub.com/wp-content/uploads/2020/12/zachary-totah.jpg) ](https://www.selecthub.com/author/zachary-totah/) ### Zachary Totah Content Manager As SelectHub’s Content Manager, Zachary Totah leads a team of more than 35 writers and editors in their quest to provide content that helps software buyers find the right system for their company. [ Show More](https://www.selecthub.com/author/zachary-totah/) [ ![Joe Evans](https://www.selecthub.com/wp-content/uploads/2022/08/joe-evans.png) ](https://www.selecthub.com/author/joe-evans/) ### Joe Evans Editor and Senior Market Analyst Joe Evans is an Editor and Senior Market Analyst at SelectHub with expert experience crafting top-notch written digital content for niche online brands all over the internet. [ Show More](https://www.selecthub.com/author/joe-evans/) [ ![Christina George](https://www.selecthub.com/wp-content/uploads/2022/08/Christina-George.jpg) ](https://www.selecthub.com/author/christina-george/) ### Christina George Technical Content Writer A Technical Content Writer at SelectHub, Christina George covers home health and MES. Formerly a food writer, copywriter and social media sleuth, she has a soft spot for a quality pun. [ Show More](https://www.selecthub.com/author/christina-george/) ## Most Recent Articles [CPQ](https://www.selecthub.com/category/cpq/) Making things click in the sales industry is hard. Making sales using analog techniques dating back to the 70s is even harder. Kind of like challenging Gordon Ramsay to a cook-off when you’re blindfolded. Entering the digital era with [CPQ software](https://www.selecthub.com/c/cpq-software/) benefits your employees and clients, helping you see quicker response times and larger margins. Christina George11 Benefits CPQ Software Brings To Your Business [read more](https://www.selecthub.com/cpq/cpq-benefits/) [CPQ](https://www.selecthub.com/category/cpq/) It wouldn’t be an exaggeration to say quote-to-cash (QTC) dominates the lion’s share of the sales process. A buzzword in [CPQ software](https://www.selecthub.com/c/cpq-software/) and sales management, what falls under the QTC umbrella? It’s easy to list surface-level components like configuration, quoting, pricing and billing. In this article, we’ll look at quote-to-cash under the microscope and share the scoop on process steps, benefits, challenges and best practices. Christina GeorgeWhat Is Quote-To-Cash? A Comprehensive Guide [read more](https://www.selecthub.com/cpq/quote-to-cash/) [CPQ](https://www.selecthub.com/category/cpq/) Welcome to SelectHub’s ultimate [Infor CPQ](https://www.selecthub.com/p/cpq-software/infor-cpq/) review. We’re here to give you a detailed tour and our honest, unbiased opinions about Infor’s [CPQ software](https://www.selecthub.com/c/cpq-software/). Devon HennigThe Ultimate Infor CPQ Review For 2026 [read more](https://www.selecthub.com/cpq/infor-cpq-review/) [CPQ](https://www.selecthub.com/category/cpq/) Pricing strategies come in all shapes and sizes. Figuring out the right price strategy for a new product, even with [CPQ software](https://www.selecthub.com/c/cpq-software/), can be trickier than solving a Rubik’s cube blindfolded. If you want to follow in the footsteps of giants like Netflix and Uber, penetration pricing might be just the ticket. Christina GeorgeWhat Is Penetration Pricing? A Comprehensive Guide To Goals, Pros, Cons, Examples, Usage and Implementation Tips [read more](https://www.selecthub.com/cpq/penetration-pricing/) [CPQ](https://www.selecthub.com/category/cpq/) Getting a handle on price optimization can feel like cracking an advanced algebra problem. Price optimization models are constantly morphing and changing, making it tricky to match theories with market conditions and your product. Tools like [CPQ software](https://www.selecthub.com/c/cpq-software/) can lend a hand, but you still need a clear understanding of the process, models and challenges to make it work. In this article, we’ll give you a play-by-play on all things optimization. Christina GeorgePrice Optimization: A Comprehensive Guide [read more](https://www.selecthub.com/cpq/what-is-price-optimization/) [CPQ](https://www.selecthub.com/category/cpq/) What do Taylor Swift, movie theaters and Uber have in common? Dynamic pricing. Whether it’s the latest concert tour, weekend prices or surge pricing after a night out, prices continuously change based on several variables. This article will break down dynamic pricing and explain the types, examples, pros and cons, strategies and software. Christina GeorgeWhat Is Dynamic Pricing? A Comprehensive Guide [read more](https://www.selecthub.com/cpq/dynamic-pricing/) [CPQ](https://www.selecthub.com/category/cpq/) Your sales team is a high-powered offensive team. They’re armed with incredible product knowledge, industry connections and sales processes. But complex configurations and outdated quoting processes can lead to fumbles – slow quote turnaround times and missed opportunities. [CPQ software](https://www.selecthub.com/c/cpq-software/) could be your secret weapon to gain some yards. But, much like taking your team to the Super Bowl, successful implementation doesn’t happen overnight. Let this article serve as your playbook for a winning CPQ implementation strategy. We’ll break down steps to follow, pricing considerations, common challenges and best practices. Let the games begin! Christina GeorgeCPQ Implementation: A Comprehensive Guide [read more](https://www.selecthub.com/cpq/cpq-implementation/) [CPQ](https://www.selecthub.com/category/cpq/) Time is money. And in the world of sales, doing things efficiently and saving time can be enough to give you a much-needed edge over your competition. In fact, research shows 50% of prospective buyers choose the vendor with the quickest response time. So, how can you jump the proverbial queue? Two words — [CPQ software](https://www.selecthub.com/cpq-software/). Read on to see which CPQ features and requirements you should consider and how they can help ace your sales activities. Christina GeorgeThe Top 8 CPQ Features & Requirements Checklist [read more](https://www.selecthub.com/cpq/cpq-features-requirements/) ### CPQ Software Sidebar [ **Compare Top CPQ Software Leaders** Pricing, Ratings, and Reviews for each Vendor. PLUS… Access to our online selection platform for free. ![CPQ Software Top Products](https://www.selecthub.com/wp-content/uploads/2022/09/CPQSoftwareProducts.png) ](https://pmo.selecthub.com/request-custom-scorecard/?category=CPQ%20Software) [ **Requirements Template for CPQ Software Software** Jump-start your selection project with a free, pre-built, customizable CPQ Software requirements template. ](https://pmo.selecthub.com/cpq-software-requirements-onsite/) #### **See the CPQ Software Leaders and Get:** [ CPQ Demos](https://www.selecthub.com/c/cpq-software/) ```json {"@context":"https://schema.org","@graph":[{"@type":"CollectionPage","@id":"https://www.selecthub.com/category/cpq/","url":"https://www.selecthub.com/category/cpq/","name":"What is Configure Price Quote (CPQ)? 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