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Showing posts with label quote generation. Show all posts
Showing posts with label quote generation. Show all posts

Is sales ready?

Posted On Thursday, June 11, 2020




Customer often ask us if we think their company is ready to digitalize sales. It’s a fair question and the answer is almost always yes. For the company it’s simple, if we don’t digitalize our sales our competitors will.

When your competitors start using digital tools for selling their products it has been proven to have a great impact. When things that previously took months now can be done in days and when days can turn into minutes, that’s when it will get very difficult to compete. If you’re the one still doing old-school, that is.

The question I often ask is not if the company is ready. Normally production is all in for doing things in a structured and well thought out way. They’ve been doing it that way for centuries by now.

Product development have also learned to use new tools, both to revolutionize the way things are calculated and optimized for better utilization and environmental impact.

But there is one department that often is two steps behind. Sure, they’ve got fancy gadgets and they’ve all learned to master tools like Power point, Word and e-mail. They have often been forced into some kind of CRM-system to align with the tracking and the forecasting.

When it comes to selling products, it’s often a completely different story.

Some manufacturers still believe that selling exactly what the customer is asking for is the way forward. The guys in production knows the problem this creates, the girls in product development know all to well how this turns the job more into firefighting more than anything else.

But sales is often ok with doing what’s really bad for the company. They'll often prefer to keep doing it wrong.

Therefore, it’s time to get the act together and understand the difference between what you COULD sell and what you really SHOULD sell. There's a big difference, both in practice and when it comes to bottom line profit.

Digital tools (and in this case I’m particularly taking about CPQ) will draw a very defined line between good and bad when it comes to customer offerings. As I said in the beginning, this is an easy decision for the company. But is sales really ready for this?

If your sales reps still think that full flexibility is the only way the product can be sold, then maybe CPQ is not for you. If you can’t accept that some proposals should never see the light of day, then digitization may not be for you.

So, my advice is for companies that think digital presence is essential in these times is very simple:

First of all, you need to make sure your sales department is ready to do thing right.

If not, leave it to your competitor. To find new ways into the future.


What is a CPQ process?

Posted On Wednesday, August 14, 2019


Definition

CPQ stands for Configure, Price, Quote. The CPQ process includes selecting components (configure), handling prices and discounts (price) and generating various documentation (quote, technical specifications, 2D- and 3D-drawings).

The CPQ process has a long history with manufactures of complex products, but with the introduction of SaaS (software as a service) the market is currently expanding into service offerings and less complex products.

The CPQ process

- supports a simple way to select valid product combinations with respect to product rules and limitations

- prices the product according to bundling and discounts (manual or automatic)

- creates an accurate and persuasive quote documents based on configuration and pricing information information

CPQ software connects front and back end systems and automates the lead-to-cash process.

What is a CPQ process?

What’s normally included in the CPQ process? Is it all automated and in what way is it adoptable and flexible?

Configure (the C in the CPQ process)

The overall problem is that complex products often have limitations in the way a product can be configured. This can be physical limitations how options can be combined. It’s also very common that there are sales/marketing reasons for limiting availability of certain product combinations. 

A modern CPQ process simplifies the interaction by asking high-level questions about requirements. This is often referred to as guided selling.

The magic bullet when it comes to the CPQ process is the ease of maintenance. The time it takes to do updates as the product portfolio evolves is the real differentiator between a “good” and a “not so good” CPQ process.

Price (the P in CPQ process)

The pricing can, if you let it, be just as complex as the product itself. Manufacturing costs, geographies, competitive situation, and local protocols all comes into play with a clever pricing strategy.

More and more companies are currently moving to a more value-based pricing. What value does your superior product offer deliver to a specific customer? This requires some heavy lifting when it comes to analysis but once that’s in place the CPQ process can really leverage the bottom-line profit and still keep customers loyal to your brand.

Price adjustments is also an important part of the pricing step in the CPQ process. This can be set up to be automatic but should also offer flexibility and advice for sales tactics.

Quote (the Q in the CPQ process)

Once the product is configured and prices correctly, respecting both product limitations and pricing rules, the result is presented in one or more documents. These documents describe the product and is often personalized to resonate with various stakeholders it should be presented to.

The documents generated in the CPQ process describe the product an includes texts, illustrations, data sheets and sometimes drawings, all customized for each offer generated. 

The level of details can be personalized, and document generation should be fully automated.

Why CPQ - business drivers at a glance

Posted On Monday, July 14, 2014

Configure price quote (CPQ) software cuts through sales difficulty to help leading corporations sell more effectively. CPQ empowers sales reps and associates to recommend combination of goods and services, generate accurate quotes, and gets deals signed faster.

With effective step-by-step guided selling and streamlined workflows for quotes, proposals and contract management CPQ software takes advanced sales to the next level. CPQ increases average deal size, accelerates sales cycles and makes your business more professional.
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