Comments on: Why accurate estimating may be costing you sales http://www.salesprocessengineering.net/2008/07/07/why-accurate-estimating-may-be-costing-you-sales/ The application of process-engineering principles (particularly TOC) to the sales process Wed, 18 Jan 2012 22:26:08 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: James Malone http://www.salesprocessengineering.net/2008/07/07/why-accurate-estimating-may-be-costing-you-sales/comment-page-1/#comment-97 James Malone Thu, 28 Aug 2008 17:40:16 +0000 http://www.salesprocessengineering.net/2008/07/07/why-accurate-estimating-may-be-costing-you-sales/#comment-97 As a business owner of a "small" printing firm I know all too well firsthand how much time it takes to "accurately" work out the exact cost then adjust the markup up or down depending on the client type. Working on quotes into the small hours of the morning becomes tedious after several years. Why not group the 80% of your most common smaller work into a price list, tidy it up with some nice images and email it to your prospects and clients. Then you can allocate your time to build better relationships with your clients and staff and quote only the "BIG" jobs on time! As a business owner of a “small” printing firm I know all too well firsthand how much time it takes to “accurately” work out the exact cost then adjust the markup up or down depending on the client type. Working on quotes into the small hours of the morning becomes tedious after several years. Why not group the 80% of your most common smaller work into a price list, tidy it up with some nice images and email it to your prospects and clients. Then you can allocate your time to build better relationships with your clients and staff and quote only the “BIG” jobs on time!

]]> By: Justin Roff-Marsh http://www.salesprocessengineering.net/2008/07/07/why-accurate-estimating-may-be-costing-you-sales/comment-page-1/#comment-24 Justin Roff-Marsh Thu, 10 Jul 2008 01:25:20 +0000 http://www.salesprocessengineering.net/2008/07/07/why-accurate-estimating-may-be-costing-you-sales/#comment-24 Mike. The irony is that the pursuit of accuracy tends to result in anything but -- in addition to quotation lead times that tend towards infinity! It's like measuring the coastline with a ruler. The smaller the guage the greater the result(and the more time spent measuring). Estmates need to be fit-for-purpose. The real arbiter of accuracy is the market! I don't disagree that estimates should be accurate. But the $64 question is, accurate according to what standard? Mike. The irony is that the pursuit of accuracy tends to result in anything but — in addition to quotation lead times that tend towards infinity!

It’s like measuring the coastline with a ruler. The smaller the guage the greater the result(and the more time spent measuring).

Estmates need to be fit-for-purpose. The real arbiter of accuracy is the market!

I don’t disagree that estimates should be accurate. But the $64 question is, accurate according to what standard?

]]> By: Mike Latham http://www.salesprocessengineering.net/2008/07/07/why-accurate-estimating-may-be-costing-you-sales/comment-page-1/#comment-16 Mike Latham Tue, 08 Jul 2008 13:24:19 +0000 http://www.salesprocessengineering.net/2008/07/07/why-accurate-estimating-may-be-costing-you-sales/#comment-16 Can't say I agree with your hypothesis, although I do agree you need to turn around RFQs as quickly as possible. It is essential that a company estimates the cost of any job accurately. Every time you quote you put your company's profit, and therefore continuity, on the line. "Guesstimates" only lead to headaches. You say it is important to keep the capacity flowing through the establishment. This is true providing your throughput is making money. Why work your socks off only to achieve what amounts to providing him with his order plus a cash bonus?? Here at Gridmaster, ( www.gridmaster.co.uk ), we have what we believe to have the ideal solution to estimating problems, whether they be based on a databank or on actual cycle time calculation. Have a look at our solutions.... Mike Latham, Gridmaster Can’t say I agree with your hypothesis, although I do agree you need to turn around RFQs as quickly as possible.
It is essential that a company estimates the cost of any job accurately. Every time you quote you put your company’s profit, and therefore continuity, on the line. “Guesstimates” only lead to headaches.
You say it is important to keep the capacity flowing through the establishment. This is true providing your throughput is making money. Why work your socks off only to achieve what amounts to providing him with his order plus a cash bonus??
Here at Gridmaster, ( http://www.gridmaster.co.uk ), we have what we believe to have the ideal solution to estimating problems, whether they be based on a databank or on actual cycle time calculation.
Have a look at our solutions…. Mike Latham, Gridmaster

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