What should be considered first when designing a new pricing plan in CPQ?

When designing a new pricing plan in CPQ, prioritizing the attributes of products to be sold is crucial. This focus ensures that the pricing plan aligns with the specific characteristics, features, and value propositions of the products. Understanding the attributes allows for the development of a pricing structure that accurately reflects the benefits and costs associated with the product.

These attributes might include things like the quality, customization options, usage, and packaging of the products. By clearly defining these elements, businesses can establish price points that not only cover costs but also emphasize the value the products offer to customers. Additionally, considering product attributes helps in creating bundles or tiered pricing strategies that can enhance customer perception and meet their needs effectively.

While customer feedback, market trends, and internal processes are all important factors in creating a comprehensive pricing strategy, they are most effective when built on a solid foundation of product attributes. This foundational understanding enables the implementation of customer- and market-informed strategies in a way that is relevant and viable in the context of the offerings.