How does CPQ facilitate collaboration between sales and product teams?

The answer is correct because CPQ (Configure, Price, Quote) systems are designed to enhance communication and collaboration between sales teams and product management teams. By providing a platform where both teams can share product configurations and pricing strategies, CPQ fosters a unified approach to selling.

Effective collaboration is essential for ensuring that sales representatives have access to the most accurate and up-to-date information regarding product features, options, and pricing. The CPQ system centralizes this information, allowing sales teams to configure products based on customer requirements while simultaneously aligning with the product team's offerings and pricing guidelines. This ensures that sales representatives can offer solutions that are not only attractive to customers but also feasible and profitable for the business.

In contrast, selling products directly without configuration limits the sales process and may lead to confusion or misrepresentation of product capabilities. Eliminating the need for product teams entirely would undermine the complexity of managing product offerings and pricing, while merely creating competitive pricing structures does not address the need for coordinated efforts in configuration and communication between teams.