Tacton CPQ Pricing
Protect your deal margins for complex manufacturing products. Serve your customers with accurate, instant and first-time-right prices all through the buying journey – for every product configuration selection.
Your pricing challenges
As your product offering becomes more individualized, pricing and margin protection turn into a risky game. How can you price a product variant that was never produced, installed and serviced before?
Complex products also mean complex pricing structures and models.
On top of this, your B2B customers expect accurate, consistent and instant pricing estimates after every requirement change in the buying process. If your estimates are slow or inaccurate, prospects will turn to your competitors.
With Tacton CPQ pricing capabilities you can address these challenges head-on, selling with certainty and quoting with confidence.
How Tacton CPQ Pricing helps manufacturing companies
Reduce downstream margin degradation risks
Since Tacton CPQ takes into consideration aspects from both product, manufacturing, shipping, installation and services, you gain control of your end-to-end operations when calculating the customer net price in a quote. Price and cost calculations will avoid downstream surprises, securing a reliable deal margin. This enables you to communicate accurate and first-time-right pricing to your customers – even early in the buying journey –gaining confidence and trust.
Watch this video to learn how Tacton protects you deal margins.
Flexible and powerful price models
We support virtually any type of price model and methodology. Our price engine can consider geographical market, customer segmentation, sales channels as well as variable cost drivers, e.g. volatile currency rates, material costs and shipping.
We support both one-time, recurring and usage-based pricing – even within the same configured solution. Any price adjustment types can be defined, including order size discounts, rebates, coverage-based, attribute-based, off-invoice, payment discounts, customer frame agreements, deal discounts, sales tax etc. That also includes goal-seeking price adjustments, e.g. a max deal size or minimum margin.
Instant pricing – for each and every configurator selection
By connecting price execution rules with the sales Bill-of-material output of the configurator, you are set to price virtually anything – instantly. For every configurator selection, customer net prices and margins will be recalculated and displayed immediately – including deltas. Such instancy will make a real difference when customers are balancing performance vs investment of your product, speeding up the sales velocity. And those price calculations are directly available at the fingertips of your sales reps – without drawn-out inquiries to back-office sales engineering. And with pre-pick pricing, you can determine the price effect before making the selection – directly in the configurator.
Automatic margin control
With Tacton’s automatic margin control you ensure that any configured product is quoted with a profit. Margin is automatically calculated and displayed to users (with the right permissions). Use goal-seeking pricing to adjust the net price to ensure a certain margin level. Different sales reps or roles can have different automatically approved margin levels. If a deal requires sidestepping the default margin levels, Tacton provides multi-step escalation and approval workflows.
Mixed price types
If you are selling subscription-based services in conjunction with the capital equipment, Tacton’s Subscription Pricing allows you to define the optimal services for the configured product as well as contract length, volume ramp-ups/downs and discount ramps. Based on this, the Annual Recurring Revenue (ARR) and Annual Contract Value (ACV) will be calculated, feeding into your pipe and revenue forecasts.
Watch the intro video to the left.
Price visibility and segregation
Pricing is a sensitive area. Surely there are steps in the price waterfall – for instance discounts and margins – that is best kept away from customers, partners or subsidiaries. With Tacton CPQ pricing you can set up visibility and editability rules for each column in the price waterfall. And you can segregate pricing administrators and sales rep of your sales partners and subsidiaries, so that they only see their own base-prices, commissions and agreed discounts.
Strengthen customer loyalty with Service Sales for your installed base
Aftermarket sales constitute a substantial revenue source for most B2B manufacturers. This typically involves spare parts, consumables, preventive/predictive maintenance, break-down support, trainings and upgrades. These are also vital for your customer in order to maximize the value of their purchased equipment.
With Tacton CPQ Service Sales you pull in your installed base data into Tacton CPQ and customize the service offer for each customer asset. The service definition can be based on features of the equipment, but also on past and forecasted usage. Create service quotes with a click of a button, and when the deal is closed, send the order directly into your downstream systems.
Tacton CPQ Service Sales empowers you to monetize the customer in all phases of the customer lifecycle – in one and the same system.
Individualize your service quotes with service scheduler and cost calculator
Selling services for new or installed capital equipment is vital to any B2B manufacturer. Individualizing those services is important to maximize the value of your equipment sold. But how to offer the right services for every unique case – and how to ensure that services are profitable for you?
With Tacton CPQ Service Sales a sales rep can scope the tasks, intervals and resources needed for a service offering connected to an asset – without back-office support. With clear and transparent service costs, the sales rep can define a customer net price in order to secure a profitable quote margin – in any currency. Generate faster and more accurate service quotes with Tacton CPQ Service Sales.
Flexible price bearers – start selling on value
If you are ready to move away from cost driven pricing models to more value-based way of charging your customer, Tacton CPQ is here to help. The priced items in the sales Bill-of-Material – outputted from the configurator – can be parts and components, but also performance, throughput or functions of your configured equipment. In this way, customer can more clearly understand the business value of your proposed solution and you can decouple cost from price. The journey to a value-based selling business model will for sure involve many parts of your organization, but Tacton CPQ Pricing will be one key enabler.
Continuously feed CPQ with accurate pricing data from your enterprise systems
As Tacton CPQ separates price logic and data, global or local price revisions become easy and fast, with little or no maintenance work required. Pull in your base-prices with regular batch jobs, and then Tacton will validate before releasing to the front-office sales tools.
In this way, you can quickly respond to market changes and avoid the risk of your sales team using outdated price lists in their quotes. On a global level, you can also decide if price revisions should be reinforced on ongoing opportunities or not.
The results of Tacton CPQ*
*Data from manufacturers using Tacton CPQ
Manufacturers across the globe trust Tacton
“Tacton will really help customers improve their bottom line”
“Working with Tacton CPQ was actually a very important thing in our digital journey”
“We consider Tacton to be the foundational technology improving our quote-to-cash process, dramatically improving our customer experience.”