CPQ Bundles
Table of Contents
What are CPQ Bundles?
CPQ bundles are groups of products sold together that can be selected by the salesperson or customer while creating a price quote. CPQ bundles enable customers to purchase multiple items at once and help businesses to sell related items together, providing added value.
Configuration rules within the CPQ software ensure that bundled products are compatible and can be sold together. As a result, CPQ bundles reduce quoting errors and ensure correct product configurations are sent to order fulfillment.
Synonyms
- CPQ product bundles
- Bundles in CPQ
- Product configuration bundles
CPQ Bundles: Benefits for Seller
The benefits of CPQ bundles for sellers are improved sales efficiency and quote accuracy. They enforce business logic during product configuration and quote generation and ensure the options chosen are technically valid.
Companies that offer complex products or services, such as software, hardware, professional services, and manufactured items, often use CPQ bundles.
CPQ Bundles: Benefits for the Buyer
CPQ bundles provide a streamlined customer experience. They help ensure buyers order the correct product configurations and avoid delays in order fulfillment.
Bundles of products in CPQ can often contain complex and related services, such as installation and support. They help customers save time and money while getting the necessary components to deploy a solution or service.
Types of Configuration Bundles in CPQ
CPQ bundles are groups of products that companies offer together. They might be pre-packaged with no options to change them, or they could be configurable, which lets the user choose what goes into the bundle.
In configurable bundles, there are rules to ensure the configuration is valid and that all the products selected for the bundle work well together.
Three main types of CPQ bundles are static, configurable, and nested. There are also virtual and dynamic bundles. Let’s take a look at the characteristics of each.
Static Bundle
Static CPQ bundles are bundles of products and services that are pre-defined by a company to streamline its sales process. These fixed bundles include products, services, or both that have been grouped together so customers can purchase them as a package without additional customization or configuration.
Static bundles typically have a fixed price, and no adjustments are allowed.
Configurable Bundle
Configurable bundles allow users to configure product and service packages within pre-defined rules to avoid invalid configurations. This enables sales reps to customize product bundles by selecting from limited options.
Nested Bundle
Nested bundles in CPQ are what they sound like – bundles nested within parent bundles. Nested bundles are a powerful CPQ feature that enables users to create complex product structures and pricing models.
Sales reps or customers can create bundles of multiple products with different configuration options and quote different combinations of product bundles. This can help streamline the sales process by reducing the time needed to create quotes.
Virtual Bundle
A virtual bundle is a parent bundle that serves as a container for other products. There is no price associated with a virtual bundle.
Dynamic Bundle
Dynamic bundles work together with product filter rules to allow sales representatives to choose from a list of pre-approved options. No actual product records are generated, making it simpler to keep track of, especially for evolving or growing bundles.
People Also Ask
What is a bundle of products?
A bundle of products in CPQ (configure, price, and quote) is a collection of related items sold together as a single package. This bundle can include various products from different categories or the same product type with different features or components.
With CPQ software, businesses can create bundles with customized pricing to enable sales teams to serve their customers better.
How do you create a bundle in CPQ?
The exact steps for creating a bundle in CPQ software depend on the platform. In general, to create a bundle in CPQ, first create the parent product, then create the products that are part of the parent bundle, then create sub-products, which are products that are bundled with other products but cannot be sold as standalone items.
Use Product Options to group products together into bundles.
What is bundle product pricing?
Bundle product pricing refers to the way CPQ calculates prices for bundles.
Bundle pricing is an effective strategy companies use to increase sales and profits by selling multiple products in a single package at a discounted rate. This type of pricing helps create more attractive offers for customers, encouraging them to purchase more items than they usually would.
When calculating bundle product pricing, CPQ considers the following factors:
– Product cost per unit
– Total quantity ordered
– Number of units in the bundle
– Price per unit for individual products included in the bundle