How Product Configurators Eliminate Pricing Hassles

pricing, product configurators

Manufacturers constantly seek innovative ways to streamline their operations and enhance customer experiences. One significant challenge many companies face is complex pricing for customizable products. Traditional methods often involve manual calculations that are prone to errors and can lead to confusion for both customers and staff. However, with product configurators, these pricing hassles become a thing of the past.

Product configurators allow customers to personalize products to their exact specifications and integrate with pricing algorithms to automate calculations and ensure consistency. But how exactly do they work, and can they truly solve the myriad pricing problems custom manufacturers encounter?

In this blog post, we will review common pricing scenarios, typical challenges, and how product configurators can eliminate your pricing hassles.

Manufacturer Pricing and Promotions Overview

Manufacturers juggle various tasks to ensure customer satisfaction and competitiveness. The same goes for product pricing. When determining product pricing, you must take several considerations into account. These include everything from crafting pricing strategies aligned with business goals to dynamic pricing and promotions.

Key considerations include:

  • Pricing Strategy: Creating a pricing plan that aligns with business goals, market position, and target customers. Decide which pricing approach to take: cost-based, value-based, competitive, or a combination of these approaches.
  • Product Costing: Determining product costs that cover production, distribution, and overhead costs while ensuring profitability. Analyze direct costs and indirect costs to determine a viable pricing structure.
  • Market Research: Conducting market research to understand customer preferences, purchasing behavior, and price sensitivity. This helps you set competitive prices that reflect the perceived value of your product in the market.
  • Competitive Analysis: Assessing competitors’ pricing strategies and pricing levels is essential for manufacturers to position their products effectively in the market. This involves monitoring prices, promotions, and value propositions to identify strengths, weaknesses, opportunities, and threats.
  • Dynamic Pricing: Implementing dynamic pricing strategies and adjusting prices in real time. These are based on demand, inventory levels, seasonality, and competitor pricing. This requires sophisticated pricing algorithms and analytics tools.
  • Promotions and Discounts: Planning and executing promotional activities. Sales, discounts, rebates, and bundling strategies help to stimulate demand, clear inventory, attract new customers or reward loyal ones.
  • Price Negotiation: For business-to-business (B2B) sales, engaging in price negotiations with distributors, retailers, and large customers. Negotiation skills and knowledge of pricing dynamics are crucial in securing favorable terms while maintaining profitability.
  • Price Management: Custom manufacturers need robust systems and processes for managing prices across product lines, channels, and markets. This includes establishing price lists, implementing price changes, and monitoring price compliance.
  • Compliance and Regulations: Ensuring your pricing practices comply with legal and regulatory requirements, including pricing laws, competition regulations, and taxation policies.
  • Monitoring and Analysis: Continuous monitoring of pricing performance and market dynamics is essential for custom manufacturers to assess the effectiveness of their pricing strategies. It helps identify opportunities for improvement and respond to changes in the competitive landscape.

Price Changes and Promotional Scenarios

Custom manufacturers employ promotions and sales for a variety of reasons. Each one is aimed at enhancing their business objectives and customer base while improving the bottom line. Different approaches bolster revenue streams and cultivate a deeper understanding of consumer behavior.

Manufacturers conduct promotions or sales on products for various reasons, including:

product configurators, percentage off

Frontier ERP CPQ uses its powerful product configurator to handle even the most complicated pricing scenarios.

  1. Boosting Sales: Promotions and sales help stimulate product demand, leading to increased sales volumes. This can be particularly effective for new products or during slow periods.
  2. Clearing Inventory: Custom manufacturers often have extra inventory they need to sell like different window frame sizes or products with discontinued fabrics. This helps create room for new products and prevents losses from items that don’t sell. Sales events help move these products quickly.
  3. Competitive Advantage: In competitive markets, offering promotions can help manufacturers gain an edge over competitors by attracting customers with lower prices or added value.
  4. Customer Acquisition and Retention: Promotions can attract new customers enticed by discounted prices or special offers. An example might be 5% off custom kitchen cabinets for first-time customers. Promotions can also help retain existing customers by rewarding loyalty for repeat purchases.
  5. Generating Awareness: The right marketing strategy can increase brand awareness about a product or brand. This is especially true for limited-time offers or exclusive deals.
  6. Seasonal Marketing: Manufacturers often run promotions during holidays or special occasions to capitalize on increased consumer spending and gift-buying behavior. An example may be giving discounts on desks during tax season.
  7. Building Relationships: Manufacturers may offer promotions to dealers as incentives for promoting their products prominently in stores.
  8. Improving Cash Flow: While discounts may reduce immediate profit margins, they can improve cash flow by generating revenue faster. This is especially true if there is a large stockpile of materials from a canceled order.

Common Custom Manufacturing Pricing Challenges

Unfortunately, custom manufacturers encounter problems when entering and tracking pricing and promotions for their customers. Problems can occur from disparate systems, poor analysis, or a lack of price control features in many product configurators. No matter the reason, the following are some of the most common problems:

Price Structure Complexities

Custom manufacturers often deal with intricate pricing structures because of material, labor, and design option variables. Managing and tracking these diverse pricing models can be daunting.

Manual Data Entry Errors

Inputting pricing and promotional information manually increases the likelihood of errors, such as incorrect prices, discounts, or terms. These errors can lead to financial losses, customer dissatisfaction, and operational inefficiencies.

Inconsistent Pricing Across Channels

Custom manufacturers serve a diverse clientele, spanning various industries and distribution channels. Each customer segment and channel often comes with its own set of pricing expectations and constraints. Juggling multiple price lists manually can be arduous, and prone to errors and inconsistencies. Moreover, it is an ongoing challenge to ensure that prices remain competitive across channels while safeguarding profitability.

Manual Adjustment of Regional Pricing

Regional disparities in demand, competition, and cost structures require tailored pricing strategies. However, manually adjusting prices to accommodate regional nuances can be time-consuming and susceptible to oversight. Custom manufacturers need a solution that empowers them to adapt prices based on regional factors while maintaining pricing uniformity across the organization.

Tired of dealing with pricing headaches? You can count on Frontier’s built-in CPQ software to solve your pricing problems.

Difficult Pricing Updates

Changes in costs, market conditions, or customer preferences require frequent updates to pricing and promotions. However, manually updating pricing information across various systems and platforms can be time-consuming and error-prone.

Lack of Real-Time Visibility

Lack of real-time visibility into pricing and promotional data can be a major problem for custom manufacturers. It can lead to an inability to respond promptly to market changes or address customer inquiries effectively.

Complex Sales Agreements

Manufacturers may negotiate complex sales agreements with their customers. These contracts can include volume discounts, contract pricing, rebates, or special promotions. Managing and tracking these agreements accurately can be challenging without a robust system in place.

Problematic Pricing Strategy Review

Analyzing the effectiveness of pricing and promotional strategies is crucial for optimizing profitability and enhancing customer satisfaction. However, without adequate tracking and reporting mechanisms, custom manufacturers may find it challenging to assess the performance of their pricing initiatives accurately.

What are Product Configurators?

Product configurators are interactive tools that allow clients to customize their purchases while simplifying the ordering process and streamlining production processes. Web product configurators allow for options like colors, sizes, features, and accessories that match a customer’s individual preferences.

3D product configurators can also display a 3D rendering of the product before it’s made. This helps customers visualize how their choices affect the final design. This enhances the shopping experience and reduces the likelihood of misunderstandings or dissatisfaction.

Typically integrated with configure, price, quote (CPQ) software and ERP systems, product configurators result in faster quoting and delivery. CPQ software rapidly computes pricing according to chosen options. When integrated with the ERP system, it incorporates customer discounts, production expenses, and profit margins to ensure precise pricing. Once configuration and pricing are finalized, the CPQ software automatically generates a comprehensive quote, detailing itemized breakdowns, pricing, and estimated delivery dates.

Replacing Pricing Headaches With Pricing Headway

In addition to streamlining order and production processes, product configurators play a crucial role in assigning product pricing. Product configurators can provide:

Dynamic Pricing

Product configurators can integrate with pricing algorithms to automatically adjust prices based on the selected configurations. This allows for dynamic pricing that accurately reflects the product cost, ensuring transparency and consistency in pricing.

Accurate Cost Calculation

By providing detailed specifications for each customized product, product configurators enable manufacturers to calculate the product costs accurately. This includes factoring in material costs, labor costs, and any additional expenses associated with the selected features and configurations.

Transparent Pricing

Product configurators enhance transparency in pricing by providing customers with instant pricing information based on their chosen configurations. This transparency builds trust and confidence in the purchasing process, reducing the likelihood of pricing-related disputes or dissatisfaction.

Customized Pricing Options

Product configurators can offer customers a range of pricing options based on their preferences and budget constraints. For example, customers may have the option to choose between premium features at a higher price or basic features at a lower price. This allows for flexibility in pricing to accommodate different customer needs.

Promotional Pricing

Product configurators can also facilitate promotional pricing strategies by offering discounts or special offers based on certain configurations or purchasing criteria. This allows manufacturers to drive sales and stimulate demand for specific products or features.

Advantages of Frontier ERP CPQ

on target

Let Frontier’s product configurator get you back on target with flexible, pre-set pricing logic derived from our industry-leading ERP.

Frontier ERP is ideal for custom manufacturers who want to simplify pricing with a powerful product configurator. With advanced CPQ capabilities, Frontier helps you overcome pricing hassles and drive profitability for more efficient business operations.

The dynamic features of Frontier’s parametric product configurator address common custom manufacturer pricing headaches including:

1. Complex Rules-Based Pricing

Frontier CPQ allows you to define pricing rules as mentioned above including dates, products, dealers, and promotions. This enables dynamic pricing adjustments tailored to different scenarios, ensuring optimal pricing strategies in real time from our product configuration platform.

2. Segmented Pricing

With Frontier ERP CPQ, you can effortlessly create and manage multiple price lists. This allows you to tailor pricing for different channels, regions, and customer segments. Automated price calculations based on predefined rules guarantee consistency and accuracy across the board.

3. Support for Regional Promotions

Facilitate regional pricing management by setting configuration rules based on geographic factors such as demand, competition, and cost structures. Frontier enables dynamic pricing adjustments to reflect regional variations while upholding pricing consistency overall.

4. Sales for Slow-Moving Products

Frontier’s product configurator helps optimize pricing by fostering pricing strategies based on demand, inventory levels, and market conditions. Automated alerts and notifications ensure timely interventions to prevent inventory stagnation.


Gone are the days of manual data entry errors, inconsistent pricing, and difficulty in updating pricing information. Product configurators streamline pricing processes and eliminate complexities for custom manufacturers. When integrated with ERP pricing algorithms, these tools automate calculations, ensure accuracy, and enhance transparency in pricing.

Product configurators empower manufacturers to implement dynamic pricing strategies, accurately calculate costs, and offer personalized pricing options tailored to individual customer preferences. Moreover, they facilitate promotional pricing initiatives, driving sales, stimulating demand, and optimizing profitability. With these capabilities, manufacturers can enhance customer satisfaction, stay competitive, and unlock new levels of efficiency for business growth.

Contact us today to learn more about Frontier ERP CPQ. We look forward to demonstrating how our powerful product configurator can help solve your pricing issues.


What industries benefit from using product configurators?

Product configurators are beneficial for industries such as furniture manufacturing, cabinet building, window fashions, and metal fabrication, where customizable products are offered to consumers.

How do product configurators impact manufacturing efficiency?

Product configurators streamline the ordering process, reduce errors, and optimize production workflows by providing accurate specifications and pricing information upfront, resulting in increased manufacturing efficiency and productivity.

What role do product configurators play in improving sales and marketing efforts?

Product configurators empower sales teams to offer personalized solutions to customers, resulting in higher conversion rates and increased sales. Additionally, they enhance your marketing efforts by providing visual representations of customized products, attracting and engaging customers effectively.

Can product configurators be used for both B2B and B2C sales?

Yes, product configurators can be utilized for both business-to-business (B2B) and business-to-consumer (B2C) sales. They enable companies to offer customized solutions to individual consumers as well as bulk orders to businesses.

What factors should businesses consider when choosing a product configurator?

Businesses should consider factors such as its level of integration with business systems, customization options, scalability, user-friendliness, customer support, and pricing when selecting a product configurator for their needs.

How do product configurators contribute to reducing lead times in manufacturing?

Product configurators automate the order processing and production planning processes, resulting in faster turnaround times from order placement to delivery. By providing accurate specifications and pricing upfront, they minimize delays and bottlenecks in the manufacturing process.

Share this Article: