Define 'product rules' in the context of CPQ.

In the context of CPQ (Configure, Price, Quote) systems, product rules are essential guidelines that dictate how products can be configured and priced. These rules ensure that the configurations made by sales representatives or customers align with logical and organizational constraints, such as compatibility between products, pricing matrices, and available options. By establishing clear parameters for configuration, product rules help maintain consistency and accuracy in the sales process, ultimately leading to more effective pricing strategies and a smoother customer experience.

The role of product rules is crucial in preventing incorrect product combinations and ensuring that the final quotes generated reflect the best pricing according to how products can be legally and practically bundled together. This contributes to a more efficient sales process, as it reduces errors and the need for revisions once a quote has been issued.