Which of the following pricing models can CPQ systems accommodate?

CPQ (Configure, Price, Quote) systems are designed to handle various pricing models that can adapt to different market conditions, customer demands, and business strategies. The selection of tiered pricing and volume discounts as the correct answer highlights essential features that CPQ systems commonly support.

Tiered pricing allows businesses to set different price levels based on the quantity of products purchased. For example, the price per unit decreases as the quantity increases, which incentivizes customers to buy more. This model aligns closely with sales strategies that benefit from scaling, effectively maximizing revenue while appealing to customer purchasing behavior.

Volume discounts are another feature that CPQ systems facilitate, rewarding customers for larger purchases with reduced rates. This is particularly useful in B2B environments where bulk purchasing occurs frequently. CPQ systems automate the application of these discounts, ensuring accurate pricing in quotes without extensive manual calculations or errors.

By supporting these types of pricing models, CPQ systems enhance the flexibility and responsiveness to market dynamics, ultimately contributing to improved customer satisfaction and loyalty. They also enable sales teams to create accurate and competitive quotes quickly, which is vital in closing deals efficiently.

The other options, while potentially useful in specific contexts, are too limited in scope. Dynamic pricing and flat pricing alone do not encompass the