What is CPQ (Configure, Price, Quote)?

How CPQ works

The name describes three steps.

• Configure. The rep selects products, tiers, quantities and add-ons. The software limits the choices to combinations the company actually sells.
• Price. Rules calculate the price: volume breaks, billing cycle discounts, term length and approval limits on manual discounts.
• Quote. The result becomes a document the buyer can review and sign.

Traditional CPQ systems are often large projects that sit inside a CRM and need an administrator. Lighter quoting tools cover the same three steps for teams with simpler catalogs.

A hypothetical example

This is a hypothetical example. A rep at Acme Example Software picks the Growth plan, sets 30 seats and adds one module. The pricing rules apply the annual billing discount and block a manual discount above the allowed limit without manager approval. The tool then produces a quote showing $1,800 per month and a 24-month term.

How it shows up on a sales call

Most CPQ work happens after the call, in a back-office screen. A different approach is to run the configure and price steps in front of the buyer, so questions get answered while everyone is still on the line.

forquotez takes that approach. You set up blocks and rules in the quote builder, then present and adjust the quote in live presentation mode. Teams comparing document-centric tools can read forquotez vs PandaDoc.