Calculation

Safeguard your profitability

The right solution for the aforementioned requirements has been found and your customer is satisfied with the result of the configuration. So far so good. But to close a perfect deal, you now have to impress the customer with an attractive price.

In practice, this is often where a large Excel sheet is opened and calculations made. A little discount here, a few cuts there and the delivery is free. If this is not enough, you ask your supervisor if, just this once, you will be able to offer this strategically important customer a little bit more. This is a risky game, because rarely is it controllable, and even more rarely it is comprehensible why, in the end, nothing was earned with this order.

Free to calculate within a defined range

The solution: a configurator with an integrated calculation feature. The calculation procedure in encoway CPQ Sales allows your employees to carry out their calculations, like in Excel, using columns and rows. You can grant discounts, toggle totals up and down, and do whatever is necessary to be able to produce a compelling quote. With one major difference to Excel: everything takes place in a framework of firmly defined rules and authorisations.

The challenge of profit margins

Another challenge is compliance with specified margins. If, for example, the purchase price of a component that you buy changes, this change should also be included directly in the price calculation for the overall solution in which the part is installed – after all, you do not want to end up with a negative contribution margin. Thanks to the integrated calculation system in encoway CPQ Sales, you can ensure that your calculation is profitable. Because the system knows the parameters of the process chain that are relevant for the calculation, and ensures that all the prices are always up to date.

Approval processes for additional discounts

Using workflows, the encoway CPQ system ensures that in exceptional cases it is possible to deviate from the defined calculation rules. For example, supervisors can give their approval for an important key account customer to be granted a special discount to allow you to win the contract for your company.