Estimating
for Profit
The
Service Estimator™ database is designed to reduce the probability
of inconsistent pricing of maintenance proposals and projects. The Service
Estimator™ automatically prepares your proposals, and is also used
for tracking proposal activity and sales.
In
addition, it is used in conjunction with a “Spend Plan ” to help the
operations department plan their labor and materials needs. In fact, the
“Spend Plan” is part of the estimating process. It allows the sales
reps to evaluate the proposal cost before it is presented to a customer.
In other words, double-check the price to see if it makes sense. Then get
approval from the sales or operations manager and include it with the
estimate in the New Agreement booking package.
Using
a “Spend Plan” in conjunction with the Service Estimator™ also encourages communication between the sales and
operations departments. Both will be in agreement on what the contract or
project should sell for, thus reducing the risk of low profitability.
However, the operations department remains completely responsible for the
profitability outcome. How they manage the cost of contracts and projects
is the determining factor of successful margins.
The
estimating process must include verification of the “Spend Plan”
for maintenance proposals
and small retrofit projects. Review the estimating module for further information.
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