CPQ systems

AVADA MEDIA develops CPQ (Configure, Price, Quote) systems for companies where products are assembled to order and the price depends on a large number of parameters, materials, and configuration rules.

We automate a key stage of business – the calculation and sale of a complex product :

• product configuration according to parameters and options;
• automatic cost calculation according to the rules;
• management of discounts, markups and commercial terms;
• formation of commercial proposals and specifications;
• integration with configurators, CRM, ERP and CAD;
• transfer of the order to production without manual recalculation.

The result is a unified system that integrates calculations, pricing logic, and proposal generation, allowing you to process requests quickly and accurately.

Your sales team works faster: fewer errors, higher conversion, more orders with the same team size.

What is a CPQ system?

The CPQ system is a tool that allows you to automatically:

• assemble the product according to the specified parameters;
• calculate the cost taking into account all the rules;
• form a ready-made commercial proposal.

CPQ = Configure, Price, Quote:

• Configure – selection of parameters, options and product configuration;
• Price – calculation of cost according to specified logic;
• Quote – formation of a commercial proposal.

This system is used in companies where the product does not have a fixed price and each order requires calculation.

The key value of CPQ is that a manager, dealer, or customer can independently assemble the correct product configuration and immediately receive an accurate price, without waiting for an estimate from an engineer or technologist.

Formats for using the CPQ system

The CPQ system can be implemented in two formats, depending on the current business objectives and the level of digitalization of processes.

Independent CPQ system

We can develop CPQ as a separate tool for the sales department.

In this case, the system is used as the main tool for calculating and generating proposals and allows:

• quickly replace Excel, spreadsheets and manual calculations;
• give managers a tool for independent work;
• reduce the time required to prepare a commercial proposal;
• eliminate calculation errors;
• standardize pricing logic.

This approach allows you to quickly launch the system and achieve results without complex integrations at the start.

An independent CPQ system can be implemented as a first step and then scaled and integrated with other systems.

CPQ as part of a unified production ecosystem

The CPQ system can be integrated into the company's overall digital architecture and work in conjunction with other tools.

In this case it is integrated:

• with a configurator – for product configuration by the client, dealer or manager;
• with a CAD system – for automatic generation of models, drawings and production data;
• with CRM/ERP – for managing transactions, working with clients, and transferring orders to production, procurement, and accounting.

In such an architecture, CPQ becomes part of a single digital chain:

Configuration → Calculation → Commercial Proposal → Drawing → Production

The product format collected in the configurator or CPQ is automatically converted into data for all subsequent stages – without re-entry, recalculations, or loss of information.

The key difference in approaches:

• Independent CPQ – quick launch and automation of calculations;
• CPQ in the ecosystem – complete control over the process from sales to production.

How does the CPQ system work?

CPQ is a unified logic that links product configuration, cost calculation, and proposal generation.

In practice, the system performs the following tasks:

Product configuration

The user (manager, dealer or client) selects the product parameters:

• dimensions;
• materials;
• complete set;
• options and additional elements.

The configuration can be created either manually in the CPQ interface or automatically – for example, transferred from a configurator on a website where the client has already assembled the product.

The system in this case:

• controls the allowed combinations;
• takes into account limitations;
• eliminates errors;
• does not allow to assemble a non-manufacturable variant.

As a result, the user can assemble only the correct configuration of the product.

Automatic cost calculation

After selecting the parameters, the system automatically calculates the price.

The calculation includes:

• dimensions and geometric parameters;
• materials and components;
• complexity of the product and design;
• coefficients and markups;
• discounts and commercial terms;
• dealer and partner prices;
• cutting of materials and process waste;
• stocks and consumption rates of materials;
• packaging and logistics of components;
• delivery of materials and finished products;
• additional work (assembly, installation, processing);
• production load and lead times.

The price is recalculated in real time with any configuration change.

The system takes into account not only the “net” cost of the product, but also the actual production and logistics factors that influence the final price.

This eliminates discrepancies in calculations and makes the cost transparent, accurate and manageable.

Formation of a commercial proposal

After completing the configuration, the system automatically generates:

• cost of the product;
• order composition;
• specification;
• commercial proposal;
• accompanying documents.

The manager doesn't need to transfer data manually or collect documents in separate files – everything is generated automatically.

Transferring an order to business processes

Once calculated, the data can be passed further down the chain:

• in CRM – as a deal with full configuration;
• in ERP – as an order for production and accounting;
• in CAD – as a basis for the engineering model and production preparation.

Data transfer is configured depending on the system architecture and the company's business processes.

All scenarios use a single product configuration, eliminating data re-entry and reducing the risk of errors.

Additional opportunities for development

To strengthen the system, the following can be introduced into it:

• Margin control: automatically prohibit discounts below the permitted level or send them to the manager for approval.
• Multicurrency: instant price recalculation when exchange rates or material costs from suppliers change.
• Dealer portal: a personal account where partners can use their special prices and view production statuses.
• AI assistant: prompts managers to select the optimal configuration based on the history of successful transactions.

Who needs a CPQ system and when?

CPQ is needed by companies whose product does not have a fixed price and is assembled according to the client's request from a variety of parameters.

Key signals for implementation:

• Dependence on experts: a manager cannot name a price without an engineer or technologist.
• Slow sales: preparing a commercial proposal (CP) takes hours or days.
• Human factor: calculation errors lead to losses, and different managers calculate differently.
• The scaling problem: the growth of applications requires hiring new people, not speeding up current processes.

Industries where CPQ provides maximum impact:

• custom-made furniture ( kitchens, cabinets, wardrobe systems);
• doors, windows, facade systems;
• stairs, metal structures;
• commercial equipment;
• industrial equipment with variable configuration;
• aviation equipment (airplanes, helicopters, drones);
• shipbuilding (yachts, boats, specialized vessels);
• production lines and complex technological installations;
• energy systems and infrastructure projects;
• telecommunications and server equipment;
• industrial automation systems;
• robotic systems and custom-made equipment.

Practical scenario: ordering a boat or yacht

Let's consider the system's operation using the example of a company that produces modern motorboats and yachts to order.

Configure. A manager in the showroom or a client on the website selects a base model using the configurator. The system then offers options for customizing the engine power, navigation systems, deck finish (teak, Aesthetic), and hull color.

Smart rules: If the customer selects a heavy, powerful engine, the system will automatically select reinforced trim tabs and larger capacity fuel tanks, blocking the installation of incompatible propellers.

Instant Price Calculation. The price is updated in real time as each option is added (for example, installing an audio system or climate control).

Nuances: CPQ takes into account not only the cost of equipment, but also labor costs for installation, the current exchange rate for imported components, and the client's personal discount under the loyalty program.

Quote Generation. With one click, the system generates a stylish commercial proposal with a visual representation of the selected configuration, a full list of technical specifications, and a payment schedule.

Documents: Along with the commercial proposal, a specification (BOM) for production and a sales contract with a unique VIN reservation number are automatically prepared.

Communication with production and the warehouse. Once an order is confirmed, the data is transferred to the ERP system. The engine and electronics are reserved in the warehouse, and a work order with a precise list of options is sent to the production department. Engineers don't need to ask the manager what exact color scheme has been chosen for the cabin interior.

Margin control. The system automatically calculates profit, taking into account logistics to the client's port and customs duties. If a manager wishes to offer a discount higher than permitted, the system will send a request to the manager for approval.

Result: The time from the first contact to the signed specification for a complex yacht is reduced from several weeks to 20 minutes. Errors in the assembly are eliminated: the client receives exactly the vessel they "assembled" in the system.

This example shows how you can build an entire production ecosystem for your business based on CPQ.

Cost and timeframe for developing a CPQ system

What influences the cost?

• Product complexity
• Number of parameters and dependencies
• The complexity of pricing logic
• Sales scenarios
• Integrations (CRM, ERP, CAD)
• Document requirements
• Availability of a configurator
• AI functions

Note: Development most often begins with an MVP and is gradually scaled up to a full-fledged system.

Transfer calculations and sales into the system

Stop relying on complex and time-consuming manual calculations and engineers' workload.

We'll create a CPQ system that will automatically collect orders, calculate costs, and generate a commercial proposal based on your business rules.

Submit a request – we’ll show you how this can work in your company.