AI Market Research

Pricing strategies are a crucial component to a machine manufacturers' success, here we break down everything you need to know considering pricing strategy as it relates to machine manufacturing.

Pricing Strategy
GLOSSARY

Quote-to-Cash

CONTENTS

1 - What is AI Market Research

2 - How AI Market Research Supports Pricing Strategies

3 - The Importance of AI Market Research for Business Success

4 - About MARKT-PILOT

DEFINITION

What Is Quote-to-Cash?

Quote-to-Cash Definition EN

Quote-to-Cash (QTC) is the end-to-end process covering all steps from providing a price quote to a customer to receiving final payment. It integrates sales, pricing, order fulfillment, invoicing, and revenue recognition into a single streamlined workflow. 

By connecting these functions, QTC ensures better efficiency, accuracy, and visibility across the entire sales cycle. Businesses that optimize their QTC process can improve customer satisfaction, reduce errors, and accelerate revenue generation, making it a vital component of enterprise operations.

Quote-to-Cash (QTC) is an important part of a company’s larger Lead-to-Cash (LTC) process. LTC covers everything from generating leads to receiving payment and delivering goods or services. It includes steps like Opportunity-to-Order and Quote-to-Cash, creating a smooth process from gaining customers to meeting their needs and collecting payment. 

Key Stages of Quote-to-Cash Process 

The pre-production process includes everything from a customer's initial consultation to the start of production on their machine. It is commonly known as the quote-to-cash journey. The process typically involves several steps and coordination between different departments to complete. 

  • Configure & Quote: Sales teams configure the right product/service for the customer and generate a price quote. 
  • Contract Management: Negotiating and finalizing agreements.
  • Order Fulfillment: Processing the order and delivering the product/service. 
  • Billing & Invoicing: Generating invoices and managing payment terms. 
  • Revenue Recognition: Ensuring compliance with accounting standards. 
  • Renewals & Upselling: Managing customer relationships for future revenue. 
Quote-to-cash process steps

Quote-to-Cash vs. CPQ (Configure Price Quote) 

While CPQ (Configure, Price, Quote) is part of the broader QTC (Quote-to-Cash) process, its role is more specific. It focuses exclusively on the pricing and quote generation phase, enabling businesses to configure products or services, apply accurate pricing, and generate professional quotes for customers. This makes CPQ an essential tool for streamlining sales and ensuring accuracy during the critical stages of deal negotiation. 

Feature Quote-to-Cash CPQ
Scope End-to-end process (quote to payment) Pricing & Quoting 
Involves Sales, finance, legal, operations  Sales, pricing rules 
Key Outcome Managing the full revenue lifecycle Generating accurate quotes 

Quote-to-Cash Software: How It Helps 

Quote-to-Cash software streamlines and automates the entire process, starting from generating a quote to finalizing payment. By reducing manual tasks, it minimizes errors, accelerates sales cycles, and improves overall cash flow. This software ensures greater accuracy in pricing, faster approvals, and a smoother handoff between sales and finance teams, ultimately enhancing efficiency and customer satisfaction. Some of the key benefits include: 

  • Increased Efficiency: Reduces manual tasks in pricing, quoting, and approvals. 
  • Better Pricing Control: Ensures consistency across customer quotes. 
  • Stronger Compliance: Reduces risks related to contract management and revenue recognition. 
  • Faster Payments: Optimizes invoicing and collections. 
BENEFITS OF AI MARKET RESEARCH

How AI Market Research Supports Pricing Strategies 

AI-driven market research streamlines the analysis of large datasets, such as competitor pricing, customer trends, and material costs. By automating repetitive tasks, it not only saves time but also delivers greater accuracy than common manual methods. This approach is particularly relevant to machine manufacturers aiming for market-based pricing strategies. 

WHY QUOTE-TO-CASH

Quote-to-Cash in Machine Manufacturing 

For machine manufacturers, Quote-to-Cash plays a critical role in ensuring profitability and efficiency: 

ADVANTAGES
  • Complex Configurations: Machines often require custom pricing and configuration, making CPQ a key component of QTC. 

  • Long Sales Cycles: Managing contracts, production schedules, and payment terms is essential. 

  • After-Sales & Service Contracts: Many manufacturers rely on extended service agreements, which are part of the QTC lifecycle. 
KEY CHALLENGES
  • High Variability in Pricing: Market fluctuations impact raw material costs and global supply chains, requiring agile pricing strategies. 

  • Integration with ERP & PLM: Ensuring seamless data flow between sales and production systems. 

  • Compliance & Regulations: Adhering to industry-specific financial regulations across different markets.
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About MARKT-PILOT

MARKT-PILOT is a leading provider of software for market-based spare parts pricing in machine manufacturing. The solutions enable OEMs to conduct precise market price research, automated price recommendations and optimized strategies. Customers benefit from increased sales, margins and customer satisfaction in their parts business.

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PRICERADAR The SaaS solution for market-based spare parts pricing & lead time intelligence

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