CPQ Systems – B2B Product Configuration and Pricing

What is a CPQ system?

The acronym CPQ stands for Configure, Price, Quote. This type of software helps companies prepare quotes for configurable products – those tailored to specific customer requirements – more quickly and efficiently.

To ensure that preparing a quote for such a product is fast and repeatable, a CPQ system maps out the company's know-how, which is the way sales representatives currently prepare quotes. This includes product configuration rules, pricing calculations, discount policies, and various other rules that influence the final offer. Based on these, the system can guide the salesperson through the configuration steps and automatically generate an accurate quote.

More advanced CPQ systems may also feature built-in 2D or 3D configurators. In these, a salesperson can, for example, change product dimensions, select materials, components, or additional options. Combining the configurator with stored rules and integrating it with other sales systems, such as ERP or CRM, allows the system to use real-time data to quickly calculate a price for a specific customer.

What is the difference between internal configurators and B2C configuration solutions?

When we talk about CPQ software, we are usually referring to internal configurators used by sales department staff. A salesperson logs into the system, enters the customer's requirements, and configures the appropriate product variant based on them. Some technical knowledge and sales rules are already embedded in the system, making quote preparation faster and less prone to errors. However, in more complex cases, the salesperson still relies on their own product expertise. We see such sales configurators most often in the manufacturing industry, where the number of possible product variants can be vast.

Another type of configurator is the solution aimed at end customers, most commonly used in B2C sales. They are used less frequently in B2B, although some companies implement them when the user is also a technical professional. They allow for product customization directly on the website, with the results of the changes displayed in real time. Such product configurators work best where the configuration process is simple enough for the customer to complete on their own without significant support from a specialist.

Both types of configurators can be integrated with other company systems, such as ERP, CRM, or e-commerce platforms. This enables further process automation – from retrieving product and pricing data to preparing the quote and sending the order for fulfillment.

Why do companies choose CPQ software?

As a CPQ software provider in Poland, we at Sagiton Automation are seeing growing interest from companies in implementing these types of solutions. Advances in technology are making it increasingly effective to automate quoting processes and reduce manual labor. Companies are choosing to implement improvements in this area primarily for the four reasons described below.

Reducing sales process costs

Many of our clients decide to implement CPQ systems precisely because of the costs. Maintaining a skilled sales department, especially when a large number of quotes are being prepared, can be a significant burden for a company. Automating the quoting process helps reduce repetitive tasks that sales representatives previously performed manually, thereby allowing them to handle a higher volume of quotes and sales without needing to proportionally increase the size of the team.

Lower costs are also driven by a reduction in errors that occur during the manual creation of sales quotes. We describe this aspect in more detail below.

Fewer errors

Internal configurators help reduce the risk of errors made by sales staff. If the appropriate rules and dependencies are programmed into the system, a salesperson cannot select an invalid configuration or apply parameters that exceed the product's capabilities during the quoting process.

Eliminating such errors is particularly important when selling complex products and working with distributors who may not always possess the same technical knowledge as the manufacturer. Using a CPQ system therefore helps maintain consistency in the quotes prepared by the manufacturer and its sales partners.

Accelerating sales activities and staying ahead of the competition

The quoting process is a key element of sales because it directly affects how quickly a company can respond to a customer inquiry. In many industries, response time can also be a deciding factor in competing with others. Product configurators shorten the time required to select a product variant and calculate its price. Thanks to CPQ, sales reps prepare quotes faster, which allows them to conduct sales activities more efficiently, handle a larger number of inquiries, and stay ahead of the competition.

Securing company know-how

Although companies rarely cite this as the primary reason for implementation, it is significant from the perspective of sales team management. Implementing a B2B quote configurator allows you to transfer some of your experts' knowledge into the system in the form of rules, dependencies, price lists, or even discount policies. As a result, the knowledge required to configure and price products does not remain solely in the heads of the most experienced employees. Even when team members change, the know-how remains within the sales department and can be utilized by others.

Implementing a CPQ system in the manufacturing industry – Aliaxis

One example of a CPQ system that we co-developed at Sagiton is the solution created for Aliaxis, a global manufacturer of modern hydraulic and power systems. The Akasison AutoPlanner tool automates the design process for siphonic roof drainage systems by utilizing stored technical rules and advisor expertise. Based on data provided by the client, it can select the appropriate components, perform calculations, verify the accuracy of the design, and generate BIM documentation and bills of materials.

This project clearly demonstrates the benefits described earlier in this article. Automation has helped reduce errors, standardize the quoting process, and secure expert know-how within a solution that can be used by a larger number of people. At the same time, it has significantly accelerated the work of the sales department.

The results of the implementation are measurable: engineering time was reduced from approximately 8 hours to 1 minute, and the time to prepare a quote dropped from 6 weeks to 3 days. The margin for construction waste decreased from 10% to 3%, and material consumption fell by 6–8%.

Is it worth investing in CPQ software for B2B sales?

CPQ software is particularly effective where preparing a quote requires accounting for numerous product variants, technical rules, price lists, or individual customer terms. Automating this process not only speeds up sales workflows but also reduces errors, standardizes quote creation, and protects the company's internal know-how.

In practice, investing in such quote automation often pays off relatively quickly, especially for companies that handle a high volume of inquiries or involve highly skilled specialists in the process. The more manual work that can be replaced by system-defined rules, the greater the potential for reducing costs and increasing sales efficiency.

If you are considering implementing a CPQ solution in your company, contact us – during a free consultation, we will advise you on how to best approach this type of project.