Multidimensional Quoting

What Is Multidimensional Quoting (MDQ)?

Multidimensional quoting (MDQ) is a sales configuration technique that equips businesses to present and manage complex product offerings across various dimensions and time frames. This approach enhances the accuracy of quotes and allows for customization in response to diverse customer needs. MDQ supports scenarios where pricing varies significantly due to different features, quantities, or contractual terms that evolve over time. This level of quoting complexity is advantageous in industries where products and services are highly configurable and customer specifications are intricate.


  • MDQ
  • Multidimensional Pricing
  • Complex Deal Configuration

Key Components of Multidimensional Quoting

Multidimensional quoting integrates several elements that enable its functionality and adaptability across various sales scenarios.


In multidimensional quoting, each quote line can be designated to represent different time periods, such as months, quarters, or years. This segmentation allows for dynamic pricing adjustments that reflect changes over time, tailored to meet contractual or promotional needs. Businesses can offer detailed, time-sensitive pricing strategies that align closely with customer and market demands by structuring quotes this way.

Subscription-Based Model

MDQ assists financial management in subscription-based products throughout the subscription’s duration. Prices can be set to change based on predetermined schedules or in response to evolving service tiers and customer usage patterns. This flexibility is essential for maintaining competitive and appealing subscription offers.

Quote Line Editor and Other Tools

The quote line editor is a focal tool within MDQ frameworks, typically found in Configure, Price, Quote (CPQ) software systems. It allows sales teams to manipulate and customize each aspect of the quote, ensuring that every detail is tailored to specific customer requirements. Other tools within MDQ may include quote builders, analytics for forecasting, and alignment with inventory and supply chain data, enhancing the overall efficacy and responsiveness of the quoting process.

Types of Multidimensional Quotes

Multidimensional quoting can adapt to various pricing structures, each serving unique customer needs and business strategies.

Fixed-Price Subscription

This type of quote locks in the price for the duration of the subscription, ensuring customers are charged a consistent rate regardless of any changes in service dimensions. For instance, a software company might offer a yearly subscription at a fixed rate, with no price alterations even if new features are added or usage increases.

Ramped Pricing

Ramped pricing is a strategy where the price increases incrementally over the subscription period. It’s often utilized to attract new customers with a lower initial cost, which gradually rises to the standard rate over time. An example is a cable service offering an introductory rate for the first six months, which then steps up to a higher rate for the remainder of the contract.

Custom Periods

Custom period quoting allows businesses to tailor the duration of quotes beyond the typical monthly or yearly cycles, accommodating unique customer requirements or project timelines. For example, a construction equipment rental company might offer special pricing for 18 months aligned with the projected duration of a construction project, rather than conforming to standard rental terms.

Process of Generating a Multidimensional Quote

Creating a multidimensional quote involves a structured approach that ensures all aspects of the customer’s needs are addressed efficiently and accurately.

1. Configuration

Step 1: Access the CPQ system and select the product or service to be quoted.

Step 2: Define the dimensions that will influence the quote. These might include product features, quantities, and specific delivery or service provision time frames.

Step 3: Set up pricing rules and conditions that apply to different configurations, ensuring they reflect the complexity and variability of the product or service offerings.

2. Customization

Step 1: Review the initial quote setup to determine if it meets the customer’s specific requirements.

Step 2: Adjust dimensions such as volume, time period, and applicable discounts to tailor the quote to the customer’s needs.

Step 3: Use the CPQ’s dynamic pricing tools to automatically update the quote based on the changes made, ensuring accuracy and consistency across the quote.

3. Approval

Step 1: Submit the completed quote for internal review. This often involves a team or management oversight to ensure pricing strategy and profit margin compliance.

Step 2: Incorporate any feedback or required modifications following the internal review.

Step 3: Obtain final approval from the necessary stakeholders within the company.

Step 4: Once approved, forward the finalized quote to the customer, ready for their review and acceptance.

Benefits of Multidimensional Quoting

Multidimensional quoting offers significant advantages, enhancing how businesses cater to diverse and complex customer demands.


MDQ allows businesses to adapt quotes to meet varying customer needs across different timescales and conditions. For instance, companies can configure quotes that adjust pricing based on seasonal demands or multi-year service agreements, providing a level of flexibility that is particularly valuable in industries such as technology and manufacturing.


This approach improves the accuracy of pricing and forecasting, especially for complex sales. By considering multiple dimensions, such as quantity, duration, and configuration options, businesses can generate quotes that more accurately reflect the cost and expected revenue, reducing the risk of pricing errors and enhancing financial planning.

Customer Satisfaction

Tailored offerings directly contribute to higher customer satisfaction. When customers receive proposals that precisely meet their specifications and budgetary constraints, they are more likely to feel understood and valued by the provider. This customization fosters stronger relationships and can lead to increased loyalty and repeat business.

Challenges in Multidimensional Quoting

While multidimensional quoting offers many benefits, it also presents several challenges businesses must navigate to fully leverage its capabilities.


The complexity of setting up and managing multidimensional quotes can be challenging for any business. Each dimension—be it time, product features, or customer-specific adjustments—adds layers of intricacy to the quoting process. This can result in increased time and effort to ensure accuracy and consistency across quotes, especially in environments where product offerings and market conditions constantly evolve.


Integrating MDQ systems with other enterprise software such as ERP (Enterprise Resource Planning) and CRM (Customer Relationship Management) systems poses significant challenges. These platforms often have different data structures and functionalities, making seamless integration difficult. The lack of integration can lead to data silos, inefficiencies, and errors in data transfer, all of which undermine the effectiveness of the quoting process.


Effective use of multidimensional quoting tools requires comprehensive training for sales teams. This training must cover the technical aspects of the MDQ tools and educate the salesforce on how to think strategically about quote customization and adaptation. The learning curve can be steep, and ongoing education may be necessary to keep pace with updates and new features in the MDQ software, adding to the operational costs.

Best Practices for Multidimensional Quoting

Implementing multidimensional quoting effectively requires adherence to several best practices that ensure efficiency and accuracy. Here are some actionable tips:


Maintaining consistency in pricing and terms across all dimensions and time periods is necessary to avoid conflicts and ensure reliability. For example, a telecommunications company offering bundled services should ensure that the terms for data, voice, and text features do not conflict or vary illogically from one another or over the subscription period. Standardizing discount structures and promotional terms across similar product lines also helps simplify the decision-making process for customers and sales teams.


Quotes should be transparent and detailed, providing a clear breakdown of costs and terms. This practice helps minimize misunderstandings and build trust with buyers. For instance, a software vendor offering a cloud-based platform could itemize charges for setup, monthly usage, support, and additional features clearly in the quote document. Such clarity helps customers understand what they are paying for and assess the value, potentially reducing the sales cycle and enhancing customer satisfaction.

Review and Adjustment

Regularly reviewing and adjusting quotes to reflect market changes and customer feedback can involve quarterly reviews of pricing structures and terms based on new market data or feedback collected from sales interactions and customer surveys. An example would be a manufacturer of industrial equipment who, upon noticing shifts in material costs or competitive pricing strategies, revisits their quotes and adjusts pricing or payment terms to stay competitive and meet market expectations.

There are promising developments in the future of multidimensional quoting. Sales reps who are a part of a culture of adaptability have a greater chance of capitalizing on this technology and closing sales deals. A significant trend is the integration of AI and machine learning technologies, which are set to revolutionize MDQ by enabling systems to predict optimal pricing and configurations using vast amounts of historical data. This advancement will allow for more precise and data-driven decision-making.

Additionally, there is a move toward increased personalization and customization within sales and quoting processes. As markets become more diverse, the demand for highly personalized quoting options that can flexibly accommodate unique customer preferences and conditions is growing. Furthermore, the integration of new technologies such as blockchain is anticipated to significantly improve MDQ systems by offering enhanced transparency and security. Blockchain could ensure that all adjustments and terms within quotes are immutable and transparently recorded, reducing disputes and building trust between providers and clients. These trends indicate a shift towards more sophisticated, responsive, and trustworthy multidimensional quoting systems.

People Also Ask

How do you effectively manage changes in a multidimensional quote?

Effectively managing changes in a multidimensional quote requires a robust change management process. This includes setting clear guidelines for when and how quotes can be revised, ensuring all changes are logged and traceable, and regularly communicating updates to all stakeholders involved. Using a centralized database or CPQ system to track changes helps maintain consistency and reduces errors.

What strategies can be employed to simplify the MDQ process for sales teams?

To simplify the MDQ process for sales teams, streamline the number of steps required to create a quote and utilize user-friendly interfaces in CPQ software. Training programs should be regularly updated to include new features and best practices. Additionally, providing sales teams with pre-made quote templates and guidelines for common quoting scenarios can speed up the process and reduce complexity.

How can MDQ be leveraged to gain a competitive advantage in B2B sales?

MDQ can be leveraged to gain a competitive advantage in B2B sales by allowing businesses to offer highly tailored solutions that meet specific customer needs, thus differentiating their offerings from competitors. It also enables quicker response times to market changes and customer requests, which can improve customer satisfaction and loyalty. By using data-driven insights from MDQ tools, companies can identify trends and adjust their sales strategies accordingly.

What are common pitfalls in MDQ and how can they be avoided?

Common pitfalls in MDQ include overcomplication, which can confuse customers and slow down the sales process, and underutilizing the capabilities of CPQ software, which can lead to less optimized quotes. These issues can be avoided by regularly reviewing and optimizing the quoting process and ensuring that the sales team is fully trained on the software. It’s also vital to gather feedback from customers and sales teams to continuously improve the process and the tools used.