When quoting stalls, deals stall. Manual approvals, disconnected systems, and inconsistent pricing slow down even the best sales teams. It’s a familiar story for manufacturers and distributors who’ve spent years modernizing operations but still struggle to connect pricing and sales execution. Here’s what to do about it.
The 2025 Pricing, Selling, and Profit Optimization Report shows that this is finally changing. 47% of companies now use CPQ (Configure, Price, Quote), and another 17% are actively exploring adoption. CPQ is becoming a core pillar of commercial operations.
But adoption alone isn’t enough. The real difference between high-performing sales teams and the rest isn’t whether they have CPQ.
It’s how deeply they’ve embedded it into their quoting process.
CPQ at a Turning Point
CPQ technology has moved past the early-adopter phase. The report reveals that one in five companies already use CPQ across multiple quoting scenarios, while others are still running pilot programs or testing limited use cases.
Those who go beyond the pilot stage see transformational results. Companies that fully integrate CPQ are six times more likely to achieve top-tier quote conversion rates (above 80%) than those without it.
This is where quoting moves from transactional to strategic. It’s not about how quickly a quote gets sent, but how well it aligns with pricing logic, approval workflows, and customer data.
“CPQ is often still treated as just a ‘sales tool,’ with pricing guidance added later if at all,” Kalle Aerikkala, Business Consultant at Vendavo, noted. “When pricing and sales processes aren’t connected through the CPQ flow, it’s easy to miss targets for accuracy improvement and margin discipline.”
The Speed vs. Accuracy Myth
There’s a long-standing belief in B2B sales that “the first quote wins,” even if it means skipping approvals or bending pricing rules. But that’s a false choice.
According to the report, 29% of CPQ users report improved quote accuracy, 28% see faster turnaround times, and 28% experience streamlined approvals. The message is clear: speed and accuracy are not opposites. They’re outcomes of well-integrated systems.
Automation doesn’t just accelerate quoting. It gives teams real-time pricing guidance, reduces rework, and shortens deal cycles. That’s how quoting becomes a competitive advantage instead of a compliance headache.
“There’s a common belief that the first quote wins, and that anything that slows it down — like approvals or pricing checks — gets thrown by the wayside,” said Dan Cakora, Business Consultant at Vendavo. “But ‘speed vs. accuracy’ is a false dichotomy. A well-structured CPQ process can deliver both speed and quality, without compromise.”
Bottlenecks Behind the Scenes
So, what’s still slowing quoting down?
The report highlights the top obstacles:
- 39% of respondents cite system integration challenges
- 38% struggle with manual effort
- 25% identify approval delays as a bottleneck
These issues often overlap. Many companies have CPQ in place, but workflows still depend on manual data re-entry, disconnected CRM systems, or outdated approval chains.
That patchwork approach creates invisible friction. Quotes take longer, errors creep in, and sales teams lose trust in the system.
The solution is redesigning the quoting flow for trust, transparency, and alignment. That’s because integration isn’t a technical task, but a structural one.
Real-World Proof: Xylem’s CPQ Transformation
One of the best examples comes from Xylem, a global leader in water technology. The company faced a highly complex spare parts portfolio with over 300 base products and millions of potential configurations.
Xylem gained structure and pricing control across brands by implementing CPQ, and the results were striking:
- 6% net price improvement
- $700,000 in additional revenue within a short period
The company didn’t stop there. They scaled CPQ usage across multiple business lines, accelerating both adoption and value. It’s a textbook example of how embedding CPQ rather than just installing it drives measurable margin growth.
The Conversion Advantage
The correlation between CPQ maturity and conversion performance is unmistakable.
Most organizations in the survey fall into the 21%–60% quote-to-conversion range, and nearly half still convert below 40%. But companies that use CPQ extensively are far more likely to break through that ceiling.
Those with fully integrated CPQ are six times more likely to achieve conversion rates above 80%, while companies without CPQ often struggle to exceed 20% conversion.
That’s not a coincidence. It’s alignment in action. When quoting processes connect seamlessly to pricing logic and customer data, every quote becomes both faster and smarter.
High-performing teams also report tighter forecasting and more reliable pipeline management. Quoting accuracy and forecast precision improve together, building commercial confidence across sales and finance.
Turning CPQ from a Tool into a Transformation
The 2025 Pricing, Selling, and Profit Optimization Report distills several key action points for organizations that want to get more from their CPQ investments:
1. Measure outcomes, not implementation.
CPQ success isn’t defined by whether the system is “live.” It’s defined by how many quotes go out accurately, how fast approvals move, and how often prices hold through the win.
2. Make quoting part of the customer experience.
A slow, inconsistent quoting process signals hesitation. A fast, clean quote sends a message of confidence and reliability, and builds trust from the very first interaction.
3. Map and fix the whole flow.
Manual steps, bad data, and slow approvals are symptoms of disconnected systems. Zoom out to diagnose the entire quoting process instead of optimizing isolated pieces.
4. Demand full integration.
CPQ without pricing logic or CRM integration is just a glorified calculator. Real transformation happens when quoting, pricing, and governance work as one system.
The biggest takeaway from the data is that alignment drives performance. CPQ eliminates guesswork when it connects pricing logic, sales execution, and governance. Sales reps can quote confidently, pricing teams can enforce discipline, and leadership gains clear visibility into revenue and margin impact.
Without that alignment, CPQ adoption can plateau. And companies risk missing the very benefits the system was meant to deliver.
The Path Forward
The lesson from this year’s survey is simple: automation alone isn’t transformation. The organizations winning with CPQ are the ones that treat it as a strategic enabler, not a checkbox on their digital roadmap.
They integrate it deeply, train their teams relentlessly, and use data to refine the process continuously. The result? Faster quotes, higher win rates, stronger margins, and a quoting experience that customers actually trust.
CPQ has moved from tool to transformation. It’s no longer about quoting faster. It’s about quoting smarter, aligning teams, and driving profitable growth at scale.
Read the full 2025 Pricing, Selling, and Profit Optimization Report to explore how leading manufacturers and distributors are connecting pricing and selling for sustainable, profitable growth.
Or, if you’re ready to see how we can help you achieve your growth and profitability goals, reach out to speak with our experts today.