Calculating prices in real time: How configurators are changing the sales process

Author: Elisabeth Sonnleitner

Imagine that your customers are looking for the perfect bicycle, piece of furniture or industrial equipment. They have a precise idea of the materials, the finishes and the additional functions they want. But what about the price? How much would it cost to make all those customizations? That's where the configurator comes in - a tool that shows the price in real time. With one click, customers can adjust options and see how the price changes. Normally, there is a long wait for a quote. If the requirement changes, a new quote must be obtained. This involves a lot of effort. Often, speed is the deciding factor. The offer that customers receive the fastest is the one that wins. Price calculation with a configurator therefore offers customers not only transparency, but also maximum flexibility, while at the same time reducing sales and consulting costs for companies.
 

Can the price be calculated and adjusted through a configurator?

Yes, a configurator can be used to calculate the price. Based on the selected options, the price is updated and adjusted in real time so that customers can see the exact price for their individually configured product. A configurator thus offers a convenient way to customize products according to individual needs while keeping an eye on the price. At the same time, this means that the sales and consulting effort is greatly reduced. Time-consuming quotation calculations are virtually eliminated.

Which price representations are possible in a configurator?

Depending on your wishes, the price can be represented differently in a configurator. The most common forms are:

• Unit price per item (= piece list)
• Total price per category
• Complete total price

Depending on your wishes, the price can be mapped differently in a configurator.
 

Can discounts be taken into account in dealer prices?

Of course, discounts and reduced prices can be taken into account and displayed in the configurator. The entry of a reduced price is done on the respective item level. For example, if you have different dealers who use the configurator, a differentiated display of the price is even possible here.

Are shipping and transport costs taken into account in the configurator?

The transport or shipping costs are taken into account in the checkout process. This is the common and usual procedure as known from store systems.

How quickly can changes to the price be implemented?

The great thing about configurators is the ability to implement price changes quickly and easily. If prices change, they can be changed in the system in no time at all or uploaded using a new Excel list. The new price is displayed within seconds. If prices are maintained centrally in an ERP system or store system, they can of course also be transferred to the configurator in real time via an interface.  Think here of your catalogs and brochures. Prices cannot be changed there. How many printed documents are disposed of, pasted over,... every year because of incorrect price information?

Advantages for customers - Calculate prices with configurator

The integration of a configurator with real-time price calculation offers companies a variety of benefits:

• By selecting specific features, options or parameters, customers can calculate the price in real time and immediately see how their decisions affect the final price. This provides a high level of transparency and allows customers to plan their budget effectively.
• In addition, customers can try different combinations and variations to find the best option for their price-performance ratio.
• The configurator with price calculation thus simplifies the purchasing process considerably.

Advantages for companies - calculate prices with configurator

Implementing a configurator with real-time pricing brings a variety of benefits to companies:

• Automating the pricing process increases efficiency and minimizes potential sources of error. Quotes with long waiting times are a thing of the past.
• In addition, the configurator enables better customer loyalty, as customers have the opportunity to actively design their product or service and receive a personalized offer. At the same time, the corresponding price is calculated in real time.
• Overall, it improves the effectiveness of the sales process, increases customer satisfaction and leads to an increase in sales in the long term.
   

Conclusion: Calculate prices in real time

The introduction of configurators has a significant impact on the sales process, especially when it comes to calculating prices in real time. It enables companies to offer customized products to their customers and calculate appropriate selling prices for them in real time. This approach has numerous benefits, including improved customer experience, faster purchase decisions and more efficient sales execution. Real-time pricing through configurators also enables companies to gain competitive advantage by reacting flexibly to market changes and adjusting their prices.