Sales quoting glossary

What is a sales quote?

A sales quote is a document in which a seller states the specific price and terms it will honor for a defined set of products or services, usually until a stated expirati...

Quote vs proposal vs estimate: what is the difference?

A quote is a firm price for a defined scope, an estimate is an approximate price that may change as the scope becomes clear, and a proposal is a persuasive document that...

What is CPQ (Configure, Price, Quote)?

CPQ, short for Configure, Price, Quote, is a category of sales software that helps a seller choose a valid combination of products, apply pricing and discount rules to it...

What is Total Contract Value (TCV)?

Total Contract Value (TCV) is the total amount a customer commits to pay over the full term of a contract, including recurring charges and one-time fees.

What is Annual Contract Value (ACV)?

Annual Contract Value (ACV) is the average value of a customer contract per year of its term.

What is Annual Recurring Revenue (ARR)?

Annual Recurring Revenue (ARR) is the annualized value of the recurring revenue a company earns from its active subscription contracts.

What is a deal room?

A deal room is a private online space, shared between a seller and a buying team, that holds the documents, pricing, timeline and contacts for a single deal in one place.

What is a mutual action plan (MAP)?

A mutual action plan (MAP) is a shared document in which a seller and a buyer agree on the steps, owners and target dates required to get from evaluation to a signed agre...

What is a quote expiration date?

A quote expiration date is the last day on which a seller commits to honor the prices and terms stated in a quote.

What is good-better-best pricing?

Good-better-best pricing is a strategy in which a seller offers three versions of a product or service at rising prices, each adding more value than the one below it.

What is decoy pricing?

Decoy pricing is a tactic in which a seller adds an option that is clearly less attractive than a target option, so that the target looks like better value by comparison.

What is multi-threading in sales?

Multi-threading in sales is the practice of building relationships with several stakeholders in a buying organization so that a deal does not depend on a single contact.

What is a signing order?

A signing order is the sequence in which the people who must sign a document are asked to sign it.