What Is CPQ (Configure, Price, Quote)?
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Talk to our experts- CPQ (configure, price, quote)
- CPQ (configure, price, quote) is software that helps sellers quote complex and configurable products, such as heavy trucks, where the chosen chassis can limit the choice of engines. Its configure step combines components and parts into a viable product, and a configuration engine manages the complexity when a product is highly configurable.
Also called: configure price quote
How it works
CPQ software covers the three steps in its name:
The three steps of CPQ
Components and parts are combined into a viable product, with a configuration engine for highly configurable products.
Pricing software works with the configuration engine, and the two can come from different providers.
The seller quotes the configured product to the customer.
When a product is highly configurable, the user may face combinatorial explosion, the rapid growth of the complexity of a problem, so a configuration engine is used to manage it. Some configuration engines ask a changing set of questions and present only the valid answers, adding and removing items from the bill of materials as choices are made.
A maker of heavy trucks is one example. If the customer chooses a certain chassis, the choice of engines may be limited, because certain engines might not fit that chassis. The engine chosen can in turn limit the trailer, since a heavy trailer requires a stronger engine.
Example
A rep quotes four machines for a buyer on a contract discount of 10%.
- Base machine: $1,200. Option A: $150. Option B: $90.
- Rule: Option B only works with Option A, so the configuration checks both are present.
- Price per unit: $1,200 + $150 + $90 = $1,440.
- Four units: 4 x $1,440 = $5,760.
- Contract discount: $5,760 x 10% = $576, so the quote total is $5,184.
The buyer accepts, and the quote becomes the order at $5,184.
On Shopify
Shopify B2B includes quantity price breaks and quantity rules (minimum, maximum and increment) on the Basic, Grow, Advanced and Plus plans. Shopify extended its foundational B2B features, including volume discounts and quantity rules, to the Basic, Grow and Advanced plans in April 2026.
For the quote step, if you need to quote a negotiated price that differs from the company's catalog pricing, you can set a custom price on the line item of a draft order, lock prices to maintain the quoted price, and send an invoice. A company location can also be set to submit all orders as drafts for review. Where a business needs product configuration rules, an app or a custom build can add them.
How Uncap helps
Uncap Quotes lets you configure, price, and approve complex B2B quotes that flow straight into orders. It runs the full configure, price, quote process inside the Shopify admin you already use.
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Frequently asked questions
What does CPQ mean?
CPQ stands for configure, price, quote. It is software that helps sellers quote complex and configurable products.
Why does CPQ use a configuration engine?
Highly configurable products can lead to combinatorial explosion, the rapid growth of the complexity of a problem, and a configuration engine is employed to alleviate it. In the heavy truck example, choosing a chassis limits the engines that fit it.
