In the building materials industry, sales quotes vary widely in size and complexity—from small orders for routine supplies to large, multi-million-dollar contracts for major construction projects. Managing quote approvals effectively based on deal size is essential to balancing speed, control, and risk mitigation.
This blog explores how Canadian building materials businesses can implement segmented quote approval processes using Buildix ERP to streamline workflows, reduce bottlenecks, and maintain pricing discipline.
Why Segment Quote Approval by Deal Size?
Not all quotes require the same level of scrutiny. Smaller deals often carry less risk and can be approved quickly by sales managers or automated workflows. In contrast, large deals with significant revenue impact and margin sensitivity typically require senior management or finance approvals.
Segmented approval processes offer:
Faster Turnaround on Smaller Quotes: Prevents unnecessary delays that can cost deals.
Risk Control for Large Deals: Ensures proper review to protect margins and compliance.
Efficient Use of Resources: Frees senior leaders to focus on strategic decisions.
Improved Accountability: Clear approval thresholds clarify who is responsible at each stage.
Common Segmentation Strategies
Dollar Thresholds: Set approval levels based on total quote value (e.g., under $50K auto-approved, $50K-$250K manager approval, above $250K senior management).
Margin Impact: Quotes with margins below a minimum threshold require higher-level approval.
Customer Type: New or strategic customers may trigger different approval rules.
Product or Project Complexity: Specialized products or multi-site projects might need additional oversight.
How Buildix ERP Supports Segmented Quote Approval
Buildix ERP’s configurable approval workflows enable businesses to design and automate tiered quote approval processes with features such as:
Custom Approval Rules: Define rules by deal size, margin, customer segment, and more.
Automated Notifications: Alert approvers when quotes require review.
Approval Tracking and Audit Trails: Maintain compliance and transparency.
Role-Based Access: Ensure only authorized personnel approve specific quote levels.
Integration with CPQ: Seamlessly connect quoting and approval for real-time pricing control.
Best Practices for Implementing Quote Approval Segmentation
Analyze historical sales data to set realistic approval thresholds.
Balance control and speed to avoid creating sales bottlenecks.
Train sales and approval teams on approval policies and ERP processes.
Regularly review and adjust thresholds based on market conditions and business goals.
Use ERP reports to monitor approval times and compliance rates.
Benefits of Segmenting Quote Approval
Accelerated Sales Cycle: Quicker approvals on smaller quotes increase responsiveness.
Margin Protection: Careful review of high-value deals safeguards profitability.
Reduced Approval Fatigue: Prevents overload of senior approvers with routine quotes.
Enhanced Governance: Clear policies reduce pricing errors and unauthorized discounts.
Improved Sales Team Morale: Transparent and predictable approval processes empower reps.
Conclusion
Segmenting quote approval based on deal size is a smart strategy for Canadian building materials companies to improve operational efficiency and control. Buildix ERP offers flexible and automated tools to implement these segmented workflows, ensuring the right level of oversight for each quote without compromising sales agility.
By adopting tiered quote approval, your business can accelerate sales cycles, protect margins, and build a scalable pricing governance model that supports growth and customer satisfaction.
