What is a 'pricing strategy' in the context of CPQ?

A 'pricing strategy' within the context of Configure, Price, Quote (CPQ) refers to a comprehensive approach to setting prices that takes into consideration various factors affecting pricing decisions. This includes market trends, competitive positioning, target customer segments, product costs, and perceived value. A well-defined pricing strategy ensures that pricing is not arbitrary but strategically aligned with the company's goals, maximizing both revenue and profitability while also meeting customer needs and expectations.

This approach typically involves analyzing customer data and market conditions to establish pricing models that can adapt to changes in demand or competition. By using a comprehensive strategy, companies can leverage their CPQ systems to automate pricing calculations and ensure that sales teams have access to the most accurate and relevant pricing information when generating quotes for customers. This ultimately enhances efficiency and improves sales outcomes.