CPQ (Configure, Price, Quote)
Software that helps sales teams configure a product or service, price it correctly under current rules, and generate an accurate quotation, fast and without spreadsheet archaeology.
Why it matters
Quoting is where deals stall and margins quietly die: wrong prices from old sheets, discounts beyond authority, taxes miscomputed, and days lost to internal back-and-forth. CPQ matters because speed and accuracy at the quote stage are conversion levers, the first credible, correct quote often wins.
How it works
A CPQ system encodes the catalog, pricing rules, tax logic (like GST), and discount authority. Sales picks the configuration; the system computes price with current rules, routes approvals when a discount exceeds the rep's tier, and produces a versioned, branded quote document. Versioning preserves negotiation history; integration hands accepted quotes to invoicing.
A real-world example
A rep quotes a multi-item deal with a special discount. Instead of a spreadsheet and three phone calls, the system prices from the live catalog, computes GST correctly, flags the discount for a manager's one-tap approval, and emails a numbered quote, minutes, not days, with every version on record.
Common mistakes
- ✗ Pricing from personal spreadsheets that drift from the real catalog
- ✗ Discount authority by trust rather than enforced tiers
- ✗ Quotes as untracked documents, no versions, no status, no learning
- ✗ Divorcing quoting from invoicing so accepted quotes are retyped (and mistyped)
Best practices
- ✓ Single source of truth for catalog, prices, and tax rules
- ✓ Enforced discount tiers with logged approvals
- ✓ Versioned quotes with status tracking from draft to accepted
- ✓ Straight-through flow from accepted quote to invoice
Frequently asked questions
Is CPQ only for enterprises?
No. Any business quoting configurable work, dealerships, agencies, equipment sellers, wholesalers, bleeds time and margin at this stage. SMB-shaped CPQ pays back quickly.
How does CPQ handle GST?
Good systems compute tax from the rules (rates, intra- versus inter-state splits) rather than trusting manual entry, so quotes and downstream invoices stay consistent and compliant.
What connects CPQ to CRM?
Quotes are pipeline events: which deals received quotes, at what values, with what outcomes. CPQ inside a CRM turns quoting from paperwork into conversion data.
AEGIBIT Cortex includes native CPQ: catalog-driven quotations with GST, versioning, and tiered discount approvals, inside the CRM rather than bolted on.
Quotation and approvals in Cortex →