CPQ (Configure, Price, Quote)
CPQ (Configure, Price, Quote) is Software that automates the configuration of complex product offerings, applies pricing rules, and generates accurate quotes — eliminating spreadsheet-based quoting and reducing deal cycle friction.
CPQ (Configure, Price, Quote) software automates the messiest part of complex B2B sales: turning a customer's requirements into an accurate, approved quote. Without CPQ, reps cobble together pricing in spreadsheets, email discount approvals, and manually build proposal documents. Every step introduces errors and delays.
The Three Steps
- Configure: Select products, features, and add-ons. Rules prevent invalid combinations (e.g., you can't sell an enterprise add-on on a starter plan).
- Price: Apply list pricing, volume discounts, contractual rates, and promotional pricing. Approval workflows trigger for exceptions beyond rep authority.
- Quote: Generate a branded proposal document with terms, pricing breakdown, and e-signature capability.
Why RevOps Cares
CPQ is where pricing strategy meets execution. RevOps designs the pricing rules, discount tiers, and approval workflows that CPQ enforces. Bad CPQ configuration means either lost deals (too rigid) or margin erosion (too loose). The deal desk function works hand-in-hand with CPQ.
Tools like DealHub and PandaDoc provide CPQ capabilities. For more on the RevOps tech stack, see our tools directory.
Frequently Asked Questions
When does a company need CPQ?
When you have variable pricing, multiple product lines, or frequent custom quotes. If reps spend more than 30 minutes building quotes or if pricing errors are common, CPQ pays for itself quickly.
Is CPQ part of CRM?
Salesforce has native CPQ (Revenue Cloud). HubSpot has basic quoting. Standalone tools like DealHub and PandaDoc offer more advanced CPQ that integrates with any CRM.
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