A Great Opportunity! – IMPROVING NEW BUSINESS PROPOSALS

A Great Opportunity! IMPROVING NEW BUSINESS PROPOSALS

When you receive a request for quote (RFQ), you have an opportunity to gain additional sales. An RFQ is evidence that the requestor is interested in doing business with you; if your proposal is the lowest cost or highest value proposition.

An RFQ is often viewed as evidence that you are pre-qualified and on the approved supplier list. Likely, this is the result of intensive selling efforts. While it is tempting to celebrate the success of being allowed to submit a proposal, remember that submitting proposals is not why you are in business. There are three possible outcomes when a company responds to a request for quote, but only one of them can rightfully be called success.

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Costing Systems Considerations; Recovering Overhead Costs

Costing Systems Considerations:

Developing a complete understanding of your costs is critical as you endeavor to grow your business. Answering the basic question “Will we make money?” can grow very complicated when the understanding of costs is inadequate.

The costs for any product or service are usually broken into three categories.

Direct Costs — the actual price paid for the goods and labor used to build the product or supply the service you are selling. Direct costs include labor, material, and purchased parts and services.

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