In a CPQ pricing plan, what is critical to ensure when defining attribute-based pricing steps?

In a CPQ pricing plan, it is essential that each attribute is clearly defined and sequenced correctly because this ensures that the pricing logic flows logically and accurately reflects the dynamics of the product being offered. Proper sequencing allows for a structured process in which each attribute builds upon the previous one, enabling a coherent approach to pricing through the various attributes that influence the cost. When attributes are well-defined, it mitigates confusion and allows for consistent application across different scenarios, ensuring that the pricing model is both accurate and understandable.

This clarity also supports better decision-making for sales representatives as they work through the pricing configuration, enhancing the efficiency of the CPQ system overall. A system that is poorly sequenced or lacks clear definitions may lead to errors in pricing, miscommunication with customers, and ultimately, lost sales opportunities.