Product Configurator and CPQ
A product configurator with CPQ (Configure, Price, Quote) allows you to configure products, calculate prices, and create quotes in one system. This makes the sales process faster and more structured – from product selection and pricing to quote, contract, and order.
What is a product configurator and CPQ?
CPQ stands for Configure, Price, Quote and is a digital sales tool that helps companies configure products, calculate the right price, and automatically create quotes. The process can be done either by the salesperson or by the customer themselves, who configures their solution and immediately receives a quote.
A product configurator can be anything from an advanced 3D configurator to an educational variant selector. It guides the user through various choices, ensures that the right product variants are combined, and provides a clear overview of content, price, and specifications.
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A digital sales room for customers and sellers
A product configurator functions as a digital sales room where customers and sellers meet in the same process. Here, products can be configured, prices calculated, and quotes created without the need to transfer information between different systems or documents.
By consolidating configuration, pricing, quotes, and orders in the same tool, companies can standardize the entire quoting process. The result is fewer manual errors, shorter lead times, and a more efficient sales process.
This is how a product configurator works in practice
When a product is configured, the information is often retrieved from a central product library, such as a PIM system. The system ensures that the correct product variants are combined, prevents incompatible choices, and visualizes the customer's configuration.
When the configuration is complete, the price is automatically calculated based on the company's pricing rules. Based on the product selections, a quote is then generated with the correct content, structure, and branding that can be shared digitally or converted into an order.
Benefits of product configurator and CPQ
By automating configuration, pricing, and quote generation, the administrative burden in the sales process is reduced. Salespeople can spend more time on the deal and less on manual calculations and document management.
Companies that use product configurators and CPQ often experience increased conversion, fewer manual errors, and fewer quote revisions. At the same time, a more professional and clear experience is created for the customer.
When is a product configurator suitable?
Product configurators are primarily used by B2B companies that sell products with many variants or configuration options. This is especially true for companies with large product catalogs, many SKUs, and advanced or customized pricing.
The solution is also suitable for organizations with many salespeople or long sales cycles where quotes are often created manually. By consolidating configuration, pricing, and quotes in one system, the process becomes both faster and more consistent.
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Frequently asked questions about product configurator and CPQ
When a product is configured, the price is automatically calculated based on the company's rules, discounts, customer-specific agreements, and promotions. Salespeople can often adjust prices within given limits while simultaneously seeing coverage and margin.
The system generates a quote directly from the product configuration. The quote is created in the correct format with proper branding and can be shared digitally, signed, and in many cases converted into an order.
Yes, many CPQ solutions allow customers to configure products themselves. The system guides the user through the choices and ensures that the right combinations are made.
Modern solutions often include integrations with CRM and ERP, approval workflows for order approval, project and bid management, as well as features for digital signing, reminders, and the validity period of the quote.
CPQ manages product configuration, pricing, and quotes. CRM is used for customer relationships and business opportunities, while ERP handles internal processes such as finance, inventory, and purchasing.
Product data is often managed in a PIM system and displayed in e-commerce where the customer makes their choices. The information is sent to CPQ which calculates the price and sends back the result.
Most solutions are based on API-based integrations where systems communicate automatically. Middleware, events, or webhooks, as well as headless architecture, are often used to connect e-commerce, PIM, CRM, and ERP.