The Hidden Costs of Vendor Price Fluctuations: How to Save Your Business Millions
Aug 30, 2023

The Hidden Costs of Vendor Price Fluctuations: How to Save Your Business Millions

Uncover the hidden costs of vendor price changes and learn how CPQ software can safeguard your revenue.

While companies pour resources into optimizing workforce performance, enhancing product quality, and streamlining sales funnels, they frequently overlook a silent revenue-killer: fluctuating vendor prices. This post will delve into the invisible pitfalls caused by these changes and show how Configure, Price, Quote (CPQ) software can act as your organization's financial safeguard.

The Ripple Effect of Vendor Price Changes

In a dynamic business landscape, the prices offered by vendors are far from constant. Factors like supply and demand, economic changes, and even geopolitical tensions can lead to unexpected shifts in pricing. Each change in vendor prices sets off a chain reaction that can affect your business in multiple ways—most notably, in quoting.

Imagine having to readjust your entire pricing structure every time your vendor changes their prices. For businesses dealing with an extensive array of products and services, this is a gargantuan task that is susceptible to errors.

Real-World Insights: What We've Seen Before

In our previous blog post, we touched on the real-world example of a reseller who was scrambling to keep up with changing supplier prices. They lost 5% of their total revenue, equating to a staggering 2.6 million SEK in just two months. This dramatic loss was avoidable. How? By integrating a CPQ software, which we'll get into shortly.

The Unforeseen Costs

Here are some of the hidden costs your business might be incurring due to vendor price fluctuations:

  1. Administrative Load: Manual updates to pricing structures require a significant amount of time and administrative resources.
  2. Inaccurate Quoting: Human errors in updating new vendor prices can lead to quotes that are either too low (affecting your profit margins) or too high (making you uncompetitive).
  3. Missed Opportunities: In the time spent adjusting to new prices, businesses may miss out on bidding for lucrative contracts or providing timely quotes to potential clients.

How CPQ Software Can Help

CPQ software acts as more than just a tool; it serves as a safeguard for your revenue. It automates the tedious task of keeping vendor prices updated. When your vendors update their prices, the software automatically adjusts your pricing strategy, ensuring that your quotes are always accurate and competitive

The reseller mentioned earlier? After integrating vloxq, they had the most up-to-date prices at their fingertips, allowing them to save that crucial 5% of total revenue.


Vendor price fluctuations are an inevitable part of business. However, with the right tools in place, these fluctuations don't have to erode your revenue. Implementing a CPQ software can eliminate the hidden costs associated with vendor price changes and put you back in control of your business finances.

Isn't it time you safeguarded your revenue against the hidden costs of vendor price fluctuations? Invest in a CPQ software today and start saving millions for your business.

Start using the CPQ platform of the future.