A quote or a proposal is a formal statement of promise that lists the products and services to be sold to a customer at a defined price. Quote creation involves configuring products and services, pricing them, and generating quotes based on predefined rules. CPQ is a sales tool for companies to generate quotes for orders quickly and accurately. CPQ produces accurate quotes making complex products, pricing, and business rules centralized, automatic, and available in real-time.
As a Sales Representative, you need to configure products according to your customer’s requirements. A product can be standalone or bundle with options and attributes. You can configure products accurately based on predefined business rules and constraints.
CPQ enables you to manage product pricing and adjustments. The price calculation of a product also includes its options and attributes. CPQ allows you to apply discounts, markups, promotions to further adjust the price of the product.
After you finalize the configuration and pricing, you can generate quotes. You can generate a quote using predefined templates and send the quote to the customer for approval using an email. Your customer can use E-signature to sign and accept the quote. In addition, by integrating quoting software with your contract processes, you can automate renewal quotes based on previously agreed upon pricing and terms.
CPQ allows a user to perform the following tasks:
- Manage quotes
- Create, Edit, Clone, and delete quotes
- Search products on the catalog
- Refine Your Search
- Product comparison
- Guided selling
- Configure and add products to the cart
- Configure product on the catalog by selecting options and attributes
- Import a saved favorite configuration
- Collaborate to configure products
- Price products
- Create price ramp
- Define tiered-price
- Apply adjustments and bucket adjustments
- Apply promotions
- Finalize Cart
- Save cart configuration as favorite
- Finalize quote
- Generate a proposal document
- Present a proposal document
- Analyze a quote
- Accept a quote
- Activate an order
- Manage assets
- Search assets
- Renew, change, swap, or terminate assets
- View asset transaction history
- Integrate assets and contracts
- Generate bills for assets
- Manage services
- Configure a service product
- Manage a service cart
- Manage service pricing
It is important to understand how terms are used when working with CPQ.
Any discounts or markups applied to the product on the cart.
Assets define a purchased product or service. An asset is associated with an account. After being processed and fulfilled, the line items associated with new quotes, agreements, or orders result in the creation of new assets, which can then be viewed or managed from the customer’s account.
|Asset Pricing||A pricing method that allows you to leverage the sale price of an asset for its ongoing management.|
Features of a product, such as color, size, weight, and more.
A combination of standalone products that offer added value to the customer while increasing overall sales.
A view that allows hierarchical categorization of products for users to search through and add to their configuration.
An ABO action that is available on the Installed Products page to increase or decrease the quantity of assets. Applicable for all product types.
|Contract Price List||A price list that helps the customer keep track of specific price agreements as applicable for that account.|
Represents a product or service line item.
Salesforce Standard object that allows you to create opportunity records.
A group of product options that are associated with a bundled product.
|Order||A confirmation document created by CPQ for a customer before delivering the goods or services.|
Containers of items that are grouped in a price list. A price list controls which products are visible to the end-user. A price list contains several price list items; each linked to a product. A product can be set up with one or more price list items.
Price Ramps and Price Tiers
Pricing mechanisms that establish pricing that varies by time (ramp) or quantity (tiers).
A product or service that can be sold on its own as a standalone item, an option of other products, or as part of a bundled product.
Promo codes or coupons to apply additional adjustments.
Quote or Proposal
A structured definition of a prospective sale that contains product configurations, pricing, and customer opportunity information.
A tab on the Installed Products page. The renew action is applicable for all product types. Supports options to choose the renewal date in the form of Proposal End Date, Asset End Date, Farthest End Date, and a manually entered Renewal Date.
Sales Representative or Sales Rep
Individuals responsible for configuring and pricing the products on the cart and generate quotes
Refers to a device or software that is self-contained, one that does not require any other devices or software to function.
Swap is an ABO action that is available as a tab on the Installed Products page. The Swap action uses the constraint rule of type = Replacement for execution.
A tab on the Installed Products page. The Terminate action is used to terminate the contract for a product. Applicable for all product types.