CPQ (Configure, Price, Quote)

CPQ is software that configures a complex product, prices it against company rules and generates a quote — usually wired into an ERP or CRM.

CPQ exists for companies whose pricing is a computation problem: the catalog has thousands of valid combinations, discount thresholds and compliance rules apply, and a misconfiguration costs real money. The configurator stops a rep from selling a bundle that cannot be manufactured, or a price below the floor.

For companies selling services and projects, CPQ usually solves a problem they do not have. There, pricing is not computationally hard — justifying the price is. Two different tools, two different bottlenecks, and choosing the wrong category is a more common mistake than choosing the wrong product within one.