12 Questions ICT VARS Should Ask When Choosing A CPQ Solution

ICT VARs often face a complex and messy quoting process, particularly when dealing with multiple bills of materials (BoMs) and various file formats. This process often involves extensive copying and pasting, back-and-forth editing, multiple meetings with internal teams and clients, countless reviews, and challenges in tracking changes. The unique complexity, data enormity, and intricate pricing calculations make quoting for ICT projects both time-consuming and costly. To optimize this process, many VARs are recognizing the need to adopt a quoting automation tool. In fact, the market for CPQ software is predicted to grow by $1.65 billion to $3.8 billion between 2022 and 2026. 

But with so many solutions on the market, how can you be sure you’re choosing the right CPQ tool for VARs? What questions should you be asking vendors during demo calls to ensure you make the best choice?

We’ve compiled a list of 12 essential questions to help guide your decision and avoid the frustration of selecting a tool that doesn’t meet your business needs.

12 Questions to Help Select the Right CPQ for VARs

Question 1: Can multiple vendors’ and Disti’s BoM files – in any format – be easily integrated into one quote?

Manually manipulating data and checking for errors is both exhausting and prone to mistakes, making it essential to consider a solution that eliminates the need for copy-and-paste operations. The ideal tool should allow you to import BoMs in any format into a single workspace while maintaining the integrity of the data structure. This automation mitigates the risks of discrepancies, such as incorrect pricing, missed incentives, or version control errors, which can lead to costly mistakes. Additionally, a CPQ tool for VARs should support quoting equipment and services from multiple vendors and distributors within the same quote.

Question 2: Does the quoting solution offer full integration with Cisco CCW and CCW-R? 

As a Cisco partner, the solution you’re considering should seamlessly integrate with Cisco’s proprietary format to automatically access up-to-date item details, such as pricing, availability, or product descriptions.  A quick refresh of price quotes enables ICT VARs to make necessary changes and updates requested by the customer without rebuilding the entire price quote, saving much time and effort. It should also support automatic updates of your BoMs, including an unlimited number of line items. By integrating with Cisco, the solution will automate all risky copy-and-paste operations, ensuring accuracy and efficiency in your quoting process.

Question 3: As a Cisco Partner, can I get up-to-date Cisco VIP rebate calculations?

As a Cisco partner, your quoting solution should provide access to the VIP rebate percentages associated with each SKU for any outstanding opportunity and up-to-the-minute access to the latest VIP rebates while creating your quotes. This capability can save hours of work and effort, allowing you to incorporate VIP rebates quickly into your quotes within a single platform, helping you react swiftly and close more deals.

Question 4: Can the solution integrate vendor and disti BoMs in multiple currencies and easily create a single quote in one currency?

Managing multiple BoMs in various currencies presents a challenge for many VARs who do business globally and need to present a quote in one currency.  Tracking and maintaining exchange rates adds complexity to pricing, margin forecasts, reporting, and taxation. Implementing a tool that supports real-time currency exchange rates can simplify these tasks, enabling you to quickly create accurate, customer-facing quotes in the currency of your choice.

Question 5: Does the solution offer permission controls?

Choosing a solution that allows you to define and customize editing permissions can help streamline the quoting process. These include granting specific editing privileges, enabling collaborative editing with clients for more effective meetings, and reducing the need for frequent meetings. With all stakeholders having access to accurate, real-time data, you can eliminate the risk of relying on outdated Excel sheets and ensure that the information remains valid even when working in a time crunch.

Question 6: Does the solution allow for customization and configuration?

A CPQ tool for VARs must align with the unique nuances of the business. This means choosing a solution that supports extensive customization and configuration to adapt to specific sales processes, customer engagement strategies, and evolving business needs. The ideal tool should offer both configurability—adjusting built-in features to fit business operations—and customization—modifying or adding new features to address unique aspects of the business. This ensures the tool remains valuable as your business grows and evolves with new business models. By selecting a highly adaptable tool, you can avoid the pitfalls of generic solutions and support long-term growth.

Question 7: How scalable is the solution? 

The solution should seamlessly handle quotes ranging from 1,000 to 30,000 item lines, ensuring your business can scale and take on more projects without relying on outdated spreadsheet operations. The future of successful VARs lies in adopting tools that support growth, not in struggling with manual processes.

Question 8: Can the solution generate personalized quotes for a specific customer?

Many VARs want customizable templates to personalize quotes. These templates offer benefits like tailored content, customizable look-and-feel, organized item groups or categories, and a flexible, modifiable quote format. A solution that supports dynamic templates, allowing you to hide columns, rows, or sections, enables easier scanning of the quote for quicker approval.

Question 9. Can the solution generate quotes for ICT customers directly within the CRM?

The ideal solution should allow you to work in a single space with all customer data at hand, enabling you to import BoMs directly into your CRM and generate quotes from there.  This integration ensures a seamless flow of information, reduces data transfer errors, and saves time by eliminating the need to switch between systems. It also enhances visibility across the sales cycle and provides valuable insights into product trends, pricing strategies, and quote-to-order conversion rates, all within a single system.

Question 10: Does the CPQ vendor speak ICT VAR language?

It’s important to select a vendor who has worked with ICT VARs and understands their specific challenges. Ask the vendor:

• Do they understand the complexities involved with quoting for VAR clients?

• Are they familiar with the terminology and speak the ICT language?

•  Do they understand the critical challenges in the quoting process and the need for quick turnaround times?

• Will you need to spend time educating them about how to customize a solution for your needs?

These questions are important to consider from several crucial aspects: economic efficiency, time management, and effective communication with your clients. 

Question 11: Can sales teams access the solution from anywhere in the world to generate immediate and accurate quotes?

ICT VARs must be able to provide on-the-spot quotes accurately, regardless of location. This functionality enables salespeople to deliver quotes quickly under pressure, avoiding the pitfalls of outdated Excel sheets and stale information. Easy access to up-to-date pricing sources helps eliminate pricing mistakes and delays, making it a necessary feature to help sales teams generate quotes efficiently and close deals faster.

Question 12: Does the solution offer the option to create what-if scenarios of the same quote?

‘What-If’ price quote analysis simulates different scenarios in real-time, allowing you to explore and assess different variations and scenarios before finalizing a price quote. For example, VARs can adjust the content, pricing structures, or quantities on the fly, providing a dynamic quoting experience while ensuring margin forecasting is on target.

Asking the right questions can significantly transform your entire quoting process, bringing major benefits to your business and teams. Armed with the knowledge that allows ICT VARs to make a smart choice for a CPQ tool, organizations can save time and improve the end-customer experience with a streamlined quoting process that prioritizes speed and accuracy. If you’d like to speak to a CPQ integration expert at StrataVAR, please click here.