Best Dynamic Pricing Software

Dynamic pricing software is a digital tool used by businesses to adjust the prices of products or services in real-time based on various factors such as demand, competition, and market conditions. It employs algorithms and data analysis to optimize pricing strategies dynamically, maximizing revenue and profit. This software is especially valuable in industries like e-commerce and hospitality where pricing fluctuations can significantly impact sales and profitability.

Buyer's Guide

Last updated on November 3rd, 2023
Dynamic Pricing Software Is All About Using Rules and Algorithms To Modify Prices Based on Market Conditions

Dynamic Pricing Software BG Intro

Setting prices is tricky business. Especially when factors like demand, seasonality and market shortages change on a whim, standard CPQ might not cut mustard. Dynamic pricing software may be your ticket to successful price management.

After the whole Taylor Swift and Ticketmaster fiasco of 2022, getting your dynamic pricing right is crucial. We’re here to help. In this buyer’s guide, we’ll take you through the ins and outs of a dynamic pricing system, how it can help your business, what to look for in an ideal solution and pricing considerations.

Executive Summary

  • Dynamic pricing software helps companies set data-driven prices based on market conditions, historical trends and consumer behavior.
  • An ideal solution offers centralized price management, data visualization, AI-powered incident-specific optimization, pricing rules and strategy.
  • Be sure to ask vendors about software integrations and specific features before purchasing a new product.
What This Guide Covers:

What Is Dynamic Pricing Software?

Dynamic pricing software is a tool that analyzes market data and sets prices based on current consumer demand. It automates price optimization using algorithms, rules and data analysis.

Manually monitoring prices, market conditions and consumer behavior can feel like trying to fill a bucket through a filter. AI-powered strategies, easily accessible dashboards and pricing engines streamline the pricing process and help you make data-driven decisions.

Primary Benefits

Losing out on profits because you couldn’t change prices in time or missed a competitor update is a huge no-no. There are more benefits where that came from. The perks of dynamic pricing software may tip the scales in favor of implementing a new system.

Dynamic Pricing Software Benefits

Reduced Costs

Keeping an eye on market data, analyzing that data and setting prices that change based on that data is a full-time job (or three or four). Save on doling out expensive salaries for data analysts and administrators. Visibility into your price waterfall helps you pinpoint and eliminate cost leakages.

Quicker Decision-Making

Market conditions change in a matter of seconds. Making data-driven decisions without having to comb through competitor information manually and set up pricing strategies is a game changer. Automating tasks and using AI-powered price suggestions help you make price adjustments quicker.

Greater Flexibility

Adapting to market changes is the cornerstone of a successful dynamic pricing strategy.

Set up your pricing rules, including minimums and maximums, locations and historical trends and let the software update prices for you.

Better Margins

Seller’s remorse after pricing items too low is real. Use data analysis on market trends and customer behavior to adjust your pricing to optimize ideal selling conditions.

Key Features & Functionality

Omnichannel Price Management

Many hands make light work, but many channels make changing prices manually difficult. Centralize your pricing rules and strategy so you can make pricing adjustments across platforms.

AI-powered Price Optimization

All consumer demand is not created equal. AI algorithms help you increase sales and profits by tapping into customers’ willingness to pay and the data behind price recommendations.

Pricing Rules & Strategy

Set prices by configuring pricing strategies, grouping items and scheduling price computations. Some vendors allow you to simulate price strategies and view the outcomes of certain strategies and algorithms.

Inventory Management

Running out of stock because you didn’t anticipate demand is a nightmare. Alternatively, you don’t want old stock clogging up inventory. Set markdowns and inflated prices to capitalize on market conditions and optimize profits.

Data Reporting & Visualization

Manually monitoring data, compiling reports and then setting prices is a recipe for missing prime windows of opportunity. Customizable, individual dashboards allow you to chart and track KPIs and create reports. Visualize and access key statistics and make quicker, more accurate pricing decisions.

Integration

It’s unlikely you’ll have just one software implemented. Dynamic pricing software works in cohorts with CRM, business analytics and sales quoting software. End-to-end integration and API access allow you to shorten the time from lead to sale.

Software Comparison Strategy

Unlike what the love songs peddle, the right dynamic pricing software won’t be right there waiting for you. You need to keep an eye out for compatible systems, or you might find out you’ve invested time and money into a solution that’s not right for you. Here are a few things to consider:

Training: Learning curves can be steep, especially with niche software. Look for a solution with a user-friendly interface. Ask vendors if they help with resources or provide in-person training.

Data Migration: Unless this is your first rodeo, you’ve got plenty of historical data at your disposal. Check if there is a capability to transfer hard copies to digital or if vendors help consolidate data for better results.

Integration: Native integrations are easier to implement than third-party integrations. But third-party integration is better than none at all. Ascertain the systems you currently use are compatible with your new solution.

Cost & Pricing Considerations

The cost of dynamic pricing software depends largely on your scale of operations. Smaller businesses may find it easier and cheaper to opt for a subscription-based pricing model without hosting their own server. However, for larger businesses, a one-time license fee with the option to customize their modus operandi might work out better.

The Most Popular Dynamic Pricing Software

To paraphrase Alexander Pope, “to err is human, to accurately price products based on algorithms, AI and market conditions is dynamic pricing software.” But picking the right solution can be daunting.

Here’s our round-up of some of the most popular solutions to give you a starting point.

Note: These are the most popular CPQ solutions with price management capabilities, not necessarily the most popular dynamic pricing software.

Salesforce CPQ

Salesforce CPQ is a cloud-based solution to streamline price management with automation and a complex pricing engine. Model different types of payments, like one-time payments, recurring payments and payments determined by usage to optimize revenue.

Salesforce CPQ

Salesforce CPQ markup pricing. Source

Oracle CPQ

Oracle CPQ is a web-based solution that uses built-in intelligence to match customer needs and make sales. Use in-depth analysis to view price scoring, KPI comparisons, past trends and predictive win optimization data combined with dynamic industry trends to set prices.

Oracle CPQ

Oracle CPQ pricing. Source

Vendavo

Vendavo is an intelligent pricing solution designed to optimize data-driven pricing. It supports price forecasting, provides specialized metrics and data visualization for quicker decision-making. Other features include deal price management, optimized targets, embedded business insights and data-led segmentation.

Vendavo

Vendavo deal price guidance. Source

 

 

Questions To Ask

Wading through the waters of software selection can be treacherous if you don’t have a game plan. It’s important to understand what you need before you start courting vendors. Ask the following questions to clarify your requirements:

  • What are our business requirements?
  • What’s our budget?
  • What are our pain points in price management?
  • What features do we need to fix our pain points?
  • Have our competitors invested in dynamic pricing software?
  • How will the software add value to our existing operations?
  • Will this software meet our future needs?
  • Does this software integrate with current systems?
  • Do we need external assistance from the software company to fulfill our technical needs?

Dynamic Pricing Software Key Questions

Armed with your requirements, you can now cross-question vendors on if they can deliver. Here are a few questions to ask potential vendors:

  • Do you offer data migration or implementation support?
  • Which solutions does the platform integrate with?
  • Is the software customizable to specific industry pricing needs?
  • Do you have experience in my industry?
  • How does your technical support team handle help requests? Do training and priority support come with additional costs?

Next Steps

If change is the only constant in your pricing variables, dynamic pricing software can step your game up. Instead of manually changing prices and monitoring market conditions, you can use automation and data-driven insights to modify prices. But finding the right solution is easier said than done.

The first step towards successful software selection is a clear understanding of your company’s needs. Try our free requirements template to narrow your list of vendors. Happy shopping!

Product Comparisons

Jobber

User Sentiment:
User satisfaction level icon: excellent

Jobber is a cloud-based solution for field service professionals to manage operations and resources, offer customer support and expand business through features like real-time scheduling and dispatching, invoice creation and billing, quoting and expense tracking, integrated CRM, customizable automated workflows and more. Automated quotation helps close deals faster by delivering quick, accurate and professional quotes to clients via text, with a follow-up option. Users can personalize proposals by adding brand-centric product visualizations to customizable templates. Streamline quotation processes by leveraging one-click conversion, batch invoicing and on-site assessment offerings. Supporting small- to mid-sized businesses in over 50 service industries, it ensures seamless and efficient operations in a fast-moving industry, minimizing costs and maximizing resource utilization.

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PandaDoc

User Sentiment:
User satisfaction level icon: excellent

PandaDoc is an automated solution for easy documentation that offers insights, easy workflows and a fast, seamless buying experience. It allows teams to get more deals, create documents and be more predictable. Automated legal binding of eSignatures and its API ensures security, convenience and easy operations. Users can replicate the approval process by sending, creating and tracking documents such as proposals, quotes, contracts, forms and more. Integrations are available with Salesforce, HubSpot, Pipedrive, Zoho, Copper and more.

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FPX

User Sentiment:
User satisfaction level icon: great

FPX is a cloud-based solution to configure quotations for manufacturing equipment. It offers a purpose-built selling engine, domain expertise, collaborative selling and quoting, rapid deployment, and fast ROI. Users can minimize sales cycles, create accurate orders and quotations, and increase operational efficiency. It extends a selling cloud, product selector, configuration and pricing, project management, and business intelligence. It caters to both fluid handling equipment and mechanical equipment.

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Pros

User Sentiment:
User satisfaction level icon: great

PROS is an integrated solution that offers intelligence for commerce. It provides robust product catalogs, performance quote management, sales insights, market segmentation and customer-specific price optimization. Product and service configurations, streamlined agreements, omnichannel price management and real-time price delivery are some of its notable offerings. Users can engage with customers and sell personalized offerings using AI-powered technology. It provides a dedicated mix of CRM, eCommerce and an API for operational improvement.

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Conga

User Sentiment:
User satisfaction level icon: great

Conga is a cloud-based contract management, document generation and revenue management solution. Its Configure Price Quote (CPQ) module powers e-commerce by providing accurate pricing quotes with up-to-date product information. Business teams can create custom commercial documents and share them with others for online collaboration. It helps shorten contract lifecycles through automation of contract authoring, approvals and collaboration workflows.Salesforce teams can issue contract requests for approval, e-signature and subsequent housing in its document repository. In addition to streamlining processes from initial order placing to provisioning and delivery, it helps automate billing and invoice management for products, subscriptions and services.

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Zuora

User Sentiment:
User satisfaction level icon: great

Zuora is a cloud-based solution specifically made for companies that provide a subscription service or product to help them manage their finances. It serves customers in sectors such as media, communication, healthcare and B2C.It enables users to automate processes with the unique needs of subscription-centered operations in mind. Due to its support of a range of currencies and a variety of payment methods, it can be used by international companies. It also tracks KPIs such as Total Contracted Billing and Total Contracted Value and provides users with visualizations of important insights to further business development.

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FastSpring

User Sentiment:
User satisfaction level icon: excellent

FastSpring is a SaaS deployed, full-service ecommerce platform that helps businesses sell digitally. It offers integrations, risk management, financial compliance services and more through a unified dashboard. It extends an easy-to-install and globally accessible payment gateway and assists in subscription management, billing, tax and VAT collection. It accepts over 20 currencies and supports more than 15 languages.Users can increase efficiency, eliminate complexity and risks, and increase revenue by an estimated 40%. Additionally, it supports selling SaaS-enabled technologies through automated billing and dunning management. Its branded checkout experience helps reduce the cart abandonment rate.

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Salesforce CPQ

User Sentiment:
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Salesforce CPQ is a cloud-based platform designed to give the most accurate price quote with any product configuration scenario. It simplifies the complex process of navigating price quotes through options and availability. Empower service providers and administrators with complete visibility into customer payment plans and easy, accessible setup.

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Qwilr

User Sentiment:
User satisfaction level icon: excellent

Qwilr is a proposal solution that offers easy document processing with automation, esignatures and integrations with technologies like Salesforce, Hubspot, Slack and Xero. It visually represents documents, making it easy to create and design proposals, quotes, client updates and more. It provides an extensive image and video library, pre-built design templates, custom subdomains and brand-specific fonts and colors. It simplifies communications and ensures easy operation through automated engagement tracking and payments. Editable quotes and an interactive dashboard provide a flexible customer experience.

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QuoteWerks

User Sentiment:
User satisfaction level icon: great

QuoteWerks is a web-based platform that streamlines quotes and proposal generation for companies of all sizes and industries. To enhance efficiency, it integrates with many CRM, accounting, shipping, vendor, distributor, payment gateway and leasing platforms. It offers real-time pricing, warehouse availability, product descriptions and images, electronic order submissions and more.

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Better Proposals

User Sentiment:
User satisfaction level icon: excellent

Better Proposals is an integrated platform that streamlines and speeds up professional proposal creation. Simplified templates, combined with digital multi-party signatures and a secure paywall, help procure business quicker. Its other aspects include real-time follow-up, project management, web automation and more. Users can personalize and recycle proposals, and select custom domains by adding the company content, logo or fonts to deliver a consistent client experience. Designed particularly for small and medium enterprises, it’s well-suited for a wide range of industries.

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Quoter

User Sentiment:
User satisfaction level icon: excellent

Quoter, a cloud-based system, helps close deals faster by automating the processes of creating professional proposals. It ensures seamless workflows through integrations with CRMs, PSAs, billing methods, email marketing and more. An easy-to-use interface allows businesses to regulate templates according to variables and reuse them, minimizing time and increasing quotation volume.Designed for technology service providers of all sizes, it ensures flexibility. All pricing plans accommodate unlimited users, with an onboarding fee.

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ResponsiBid

User Sentiment:
User satisfaction level icon: excellent

Responsibid is an AI-based tool that helps organize quotation processes by providing instant, precise quotes. Designed to generate quotes via in-person interaction, mobile devices and websites, it allows users to eliminate bottlenecks and develop leads on the go.It syncs with Google Calendar and automates sales through online purchasing and follow-up options. Video and CRM integrations help users create personalized proposals to close more deals. Workers can track closing rates, average ticket price, lead sources and more. It offers customizations for business-specific optimization.

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Vendavo

User Sentiment:
User satisfaction level icon: great

Vendavo is a cloud-based platform that assists B2B enterprises by steering them towards an ecommerce-driven approach to optimizing prices and profits. AI-enabled processes help deliver product configurations, real-time business insights, increased win rates and more. It ensures an enhanced customer experience by applying intelligent pricing guidance as per global parameters. It offers a profit analyzer, margin bridge analyzer, deal price guidance and business risk alerts.Users can implement 2D and 3D visualizations to create extensive proposals compatible with business needs. It’s suitable for businesses with complex operations, and multiple offerings and pricing strategies.

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Camos

User Sentiment:
User satisfaction level icon: excellent

Camos is a customizable solution for streamlining sales processes by providing relevant and accurate data. It acts as a buffer between an organization and its clients by configuring offerings as per requirements. Users can seamlessly integrate with existing work infrastructures to allow bi-directional data exchange for a consistent workflow across all their technologies. It provides quick quote generations and accurate price calculations, and delivers a digitalized distribution process right from development to lifecycle forecast.

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Zilliant

User Sentiment:
User satisfaction level icon: great

Zilliant is a cloud-based platform that streamlines pricing and sales processes for B2B companies. It helps manage inventory, deals, campaigns and more, empowering businesses to get strategic leads. Real-time market pricing extracts data from varied sources to deliver optimized prices as per industry standards.Integration via native connectors ensures shorter implementation time and more coordinated workflows. With unlimited virtual scalability, it’s suitable for manufacturers, distributors and wholesalers looking to automate delivery of diverse offerings with complex pricing structures.

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Experlogix

User Sentiment:
User satisfaction level icon: great

Experlogix is an integrated solution for product configuration and automating the quote-to-order fulfillment process. Users can streamline operations and simplify order processes by implementing approval workflows and creating pricing rules.It allows users to complete complex configurations and visualize modifications without programming. Implementation can be on-premises or cloud-based. It integrates with ERP and CRM platforms, including Microsoft Dynamics, Salesforce and NetSuite.

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SAP CPQ

User Sentiment:
User satisfaction level icon: great

SAP CPQ is a cloud-based solution designed to streamline quote fulfillment and eliminate pricing errors. Users can configure products by using step-by-step selection and defining product rules. It enables customers to view product modifications and place orders.Sales representatives can generate and update quotes using any internet-accessible device. Ideal for omnichannel selling, the AI-powered tech automates and generates upsell and cross-sell options. It integrates with various CRM and ERP systems and is available in multiple languages and currencies.

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Cincom

User Sentiment:
User satisfaction level icon: good

Cincom is a cloud-based platform that provides flexible sales automation and price configuration, embedded in Microsoft Dynamics 365. It allows businesses to adapt to market changes through continuous updates. Real-time pricing and quoting options help create instant proposals, eliminating pricing errors.An easy-to-implement and user-friendly interface enables smooth onboarding for new sales reps. Native integration with Dynamics CRM empowers businesses to create branded, error-free documents for a consistent customer buying experience. Front-end and back-end customizations are available.

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Verenia

User Sentiment:
User satisfaction level icon: excellent

Verenia is a cloud-based module native to NetSuite that helps businesses increase sales by creating quick and accurate quotes. Designed to cater to manufacturing's specific needs, it enables users to configure complex products by providing a well-rounded, 3D view. It offers real-time updates on industry trends with the latest information to ensure guided selling and ordering.Users can opt for built-in or external CRM and ecommerce integrations, tweak the customizable interface to fit organization requirements and leverage the built-in forecasting and follow-up inclusions to drive sales.

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Configure One

User Sentiment:
User satisfaction level icon: great

Configure One is a web-based price quoting software designed to simplify and speed up the sales configuring process. It uses visualization and CAD functions to display prospective product configurations to customers. Users can integrate data with CRM and ERP systems. It also features a comprehensive data overview and rules-based programming for management.

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SignTracker

User Sentiment:
n/a

SignTracker is a well-known software product that ranks 157 among all Project Management Software according to our research analysts. Starting from $49, SignTracker is priced fairly and commonly offers a free trial.

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Tacton

User Sentiment:
User satisfaction level icon: great

Tacton is an automated solution that boosts and accelerates sales with quick quote generation, extensive brand-centric proposals and streamlined operational tasks. It configures offerings for sales reps and customers according to specific requirements, reducing sales cycles and ensuring high win rates. Design automation minimizes errors and reduces time spent on repetitive modeling when generating documents, drawings and 3D CAD models. Users can leverage integrations with CRMs and ERPs for smoother workflows.

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Oracle CPQ

User Sentiment:
User satisfaction level icon: great

Oracle CPQ is a cloud-based platform that provides optimizations for creating, customizing and finalizing purchase orders for medium to large-scale businesses. It empowers teams to generate comprehensive proposals, contracts and custom-branded documents. Its built-in intelligence offers automated, intuitive and real-time configurations that enable sales teams to determine customer needs and close deals faster.It offers guided pathways that accommodate dynamic industry trends to deliver the optimal product mix. Users can access it from any device for real-time interaction with customers. It also includes language flexibility, end-to-end integration, e-signature and more.

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Pricefx

User Sentiment:
n/a

Pricefx is a cloud-optimized solution that provides necessary inclusions for creating an optimal pricing strategy. It offers a 360-degree view of pricing plans, segmented price lists, quick calculations, simulation checks and more. AI-powered sales insights deliver actionable intelligence as per industry and company standards, reducing sales cycles and increasing quote win rates.Integrations with legacy connectors and the ability to pull data in any format ensure consolidated, comprehensive data visibility and processes. Users can access advanced analytics via classified dashboards and an easy-to-use interface.

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Infor CPQ

User Sentiment:
User satisfaction level icon: great

Infor CPQ is a cloud-based software that aims to enhance the customer quote experience through visuals. The visuals are incorporated in every step of the process, from interest generation to quote capturing. During the configuration process, sales employees can refer to a generated product image based on selected options.

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Facturama

User Sentiment:
n/a

Facturama is a popular software system that ranks 120 among all Billing And Invoice Software according to our research analysts. Starting from $50, Facturama is priced at a bargain, commonly offers a free trial and is most advisable for larger sized corporations. Facturama can be deployed online.

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Powertrak

User Sentiment:
User satisfaction level icon: excellent

Powertrak is a cloud-based software designed to streamline quote configuring. It maximizes efficiency by tailoring the program specific to a company. It offers advanced visualization and virtual reality imaging to better aid customers’ understanding of products. Users can create mockups and demonstrate prospective products throughout the quote process.

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Involve.me

User Sentiment:
User satisfaction level icon: excellent

Involve.me is a well-known application that ranks 61 among all Customer Experience Software according to our research analysts and 55 crowd-sourced reviews from 1 source. Starting from $19, Involve.me is priced lower than average, has offered a free trial in the past and is most applicable for businesses large and small. Involve.me can be deployed in the cloud.

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Conga CPQ

User Sentiment:
n/a

Conga CPQ is a cloud-based platform designed to increase sales by leveraging AI and acting as a guided sales coach. Users can insert their data and customize the sales processes from several models to create a unique quoting and purchasing experience.

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Apparound

User Sentiment:
User satisfaction level icon: excellent

Apparound is a popular platform that ranks 31 among all CPQ Software according to our research analysts and 11 crowd-sourced reviews from 1 source. Apparound is most fitting for companies large and small. Apparound can be deployed online and on-premise and is accessible from a limited number of platforms including Windows and Linux devices.

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servicePath

User Sentiment:
User satisfaction level icon: excellent

ServicePath is a platform designed to simplify complex price quotes with automated workflows. Centralized tools ensure accurate, fast quotes and monitor client contracts and renewals. Easy-to-use setup screens and audit logs keep management in the hands of system administrators.

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Excel-to-Word Document Automation

User Sentiment:
User satisfaction level icon: excellent

Excel-to-Word Document Automation is a well-known solution that ranks 33 among all CPQ Software according to our research analysts and 32 crowd-sourced reviews from 1 source. Starting from $9.95, Excel-to-Word Document Automation is priced at a low cost and is most advisable for any business. Excel-to-Word Document Automation can be deployed online and on-premise and is accessible from a handful of platforms including Windows devices.

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IBM Sterling CPQ

User Sentiment:
n/a

IBM Sterling is a web-based software used for generating price quotes and operating order management. It offers AI-powered data trends to optimize configuring and product processes. Users can access a centralized pricing system to automate changes and control the quote-to-order process with additional visibility. It integrates with ERP systems for added flexibility and multi-channel model usage.

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CIS Configurator

User Sentiment:
User satisfaction level icon: excellent

CIS Configurator is a popular software solution that ranks 35 among all CPQ Software according to our research analysts and 28 crowd-sourced reviews from 2 sources. Starting from $995, CIS Configurator is priced high but within reason and is most advisable for small-to-mid-sized businesses with less than 1000 employees. CIS Configurator can be deployed online and on-premise and is accessible from a limited number of platforms including Windows and Linux devices.

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Stockito

User Sentiment:
User satisfaction level icon: excellent

Stockito is a unique software product that ranks 299 among all CMS Software according to our research analysts and 2 crowd-sourced reviews from 1 source. Starting from $9, Stockito is priced fairly, has offered a free trial in the past and is most fitting for companies on the small or medium side.

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Real People... with Data

We know selecting software can be overwhelming. You have a lot on the line and we want you to make your project a success, avoiding the pitfalls we see far too often.

As you get started with us, whether it be with Software Requirements templates, Comparing, Shortlisting Vendors or obtaining that elusive Pricing you need; know that we are here for you.

Our Market Research Analysts will take calls, and in 10 minutes, take your basic requirements and recommend you a shortlist to start with.

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