Standardisation vs. customisation in CPQ: Why complex products require bespoke quotations
The role of quotations in B2B sales is undergoing significant change. In many industries, there is a clear trend towards standardised, structured quotations. However, this does not apply to all markets. In mechanical and plant engineering, for example, the more complex the products, the greater the need for individualisation in quotation preparation.
Why standardisation has gained in importance
With the advent of AI in purchasing, the landscape for standardised products is changing. Algorithms are increasingly taking over routine decisions, comparing structured data and making pre-selections before humans are even involved. Quotations are therefore increasingly being forced into comparable structures, such as tables, price blocks, and standardised text modules. This standardisation brings the following advantages:
- Speed in quotation preparation
- Error reduction through checked templates
- Compliance security (e.g. approvals, terms and conditions, discounts)
- Better controllability for management and controlling
The situation is different for complex products. Machines, plants, and customer-specific solutions cannot be explained using a single table format.
For example, an elevator manufacturer must consider the completely different requirements of elevators for historic city centre buildings compared to modern high-rise buildings. Load capacities, shaft dimensions, safety concepts, energy efficiency, standards, and design specifications can vary considerably. These differences cannot be meaningfully represented in a standardised quotation matrix.
In such cases, customers expect quotations that reflect their specific requirements and conditions. A purely standardised document appears interchangeable. It does not convey the necessary information.
When quoting for complex products, what matters?
- Explain the complexity: Technical details, variants, and adaptations must be clearly and comprehensively documented.
- Build trust: A customised quotation demonstrates to the customer that the supplier has understood their specific situation.
- Make differentiation visible: Why is this solution better than those of competitors? This is something that can rarely be conveyed in a standard template.
The 80/20 principle for the future of CPQ
The real art of modern CPQ systems, therefore, lies not in pure standardisation, but in balance:
- 80% standardisation: structure, price blocks, legal elements, and reusable modules.
- 20% customisation: texts, illustrations, and wording that address the solution's complexity and unique nature.
This keeps the quotation process efficient and scalable without compromising the individual character of complex projects.
The strategic view ahead
This trend is expected to continue in the future. Standard products will be purchased fully automatically. However, as AI takes over more decisions, there will be more time for human persuasion when it comes to complex solutions.
The future of CPQ in mechanical and plant engineering lies not in 'quotation generators' that only produce structured tables. Successful companies need clear standards and scope for individual communication.
After all, the more complex the product, the more important a tailor-made quotation becomes.
