Many job shops win about 30% of the jobs they quote, which, of course, means they lose 70% of the jobs they quote. If you treat every quote in the same way, you will spend the majority of your time working on quotes that you will not win. The best way to increase your win ratio is to stop bidding on the jobs you can’t win.
Although this sounds obvious, so many job shops quote on every RFQ that comes into their shop, taking time away from the owner, the estimator, and often the engineers who could better serve the company by spending their time building the parts of orders already won. If you haven’t evaluated the RFQ, how can you know it is worth the quoting time? Why would you spend time quoting a job that you have no chance of winning?
Here we explore the solution to the first deadly sin of quoting: failing to evaluate the quote. Taking the steps of determining your chances of winning the quote and getting the information you need upfront can save you and your shop crucial time by allowing you to focus on the jobs that you have the greater likelihood of winning.
1. Determine Your Chance of Winning the Quote
There are several key questions that will help you assess the likelihood of your shop winning the quote: Have you worked for this customer in the past? If you have quoted for the customer in the past, look at your win rate for that customer. How often have you won quotes from them? Was it profitable for your business? Do you have the present capability in your shop to make the parts?
Additionally, you should ask yourself who your competitors are. If there are other job shops that can easily make this part, how will you differentiate yourself from them?
Having a central repository where you can store all your past quotes and easily retrieve them allows you to quickly evaluate your chance of winning the quote. You can also determine whether or not you should quote this job or if this RFQ should be placed lower on the priority list of quotes to deliver.
2. Get All the Information You Need Upfront
There are also important questions for being sure you get all necessary information for quoting upfront: Do you have all the information you need to quote? How often have you spent the time quoting and sent the quote to the customer only to find out that there was missing information on the RFQ, or they sent you the wrong files to quote?
By using an online form that guides the buyer to fill in all of this necessary information, you can help reduce errors and make the quoting process more time-efficient.
Read the full 7 Deadly Sins of Quoting for Job Shops eBook here.