Would You Like Profit With That?

Would You Like Profit With That?

You finish the conversation with, "I'll get a quote to you first thing tomorrow morning." You draft the quote, slapping on the items (which you don't need to check), you take a quick look over the quote – it looks about right. You send it to the client. Another job that surely come your way. You actually enjoy quoting - you don't put a lot of thought into it. You just add in the items and occasionally feel tempted to round the numbers downwards, or maybe give away a little bit at 'mates rates' because they're a good client. The checking is almost a formality – you know it's right. BUT… The price and THE PROFIT are now SET IN STONE. You can't make any more profit than the profit already in your quote. Hmmm… Did you actually consider every item that should be in the quote? Did you review the profitability in the quote? Was it acceptable? Will you need to rely on variations to cover the items you left out? Will you be one of those businesses which rely on the kick-off payment from the next job to finish off the previous job? A couple of years ago I was working with a company that specialises in office maintenance. They would install data projectors, AV systems and cabinetry in office buildings. We had just finished mapping the process to kick off a new project – it was the last process we mapped and of course we were pleased to get it finished. It was pretty well time for a group hug and a high-five. We were feeling like we'd really achieved something. Then I looked at this one, seemingly insignificant little step – Prepare a quote – just one little step in the process. Looking at it, I remembered one of the guys mentioning the extra cost they incurred on a job because they needed to use a contractor instead of one of their staff trades. I realise that we'd put way too little effort into THE MOST IMPORTANT PROCESS IN THE BUSINESS! The champagne definitely had to go back into the fridge. We listed all the variables that should have been considered in the quote process, things such as:

  • Staff trades versus contractors
  • Any specialist skills or requirements?
  • Site visit/check measure required – yes or no?
  • Any constraint on the hours we can work on the site?
  • Any rules about street access times or booking?
  • Site induction required?
  • Noise or dust management required?
  • Security cards or keys needed?
  • Waste storage and removal issues
  • Lock-up area for our tools
  • Stairwell or handling allowance?
  • Purchase of equipment or materials – client or us to buy?
  • Do we need to match brand, model or colours?
  • Do we need to allow for lead time or availability?
[vc_separator type='normal' position='center' color='#f6f6f6' thickness='1' up='' down=''] … and the list went on a little further. That one little step "Prepare our Quote" had the potential to make or break the profitability of the project. It was so very important. We mapped the new quotation process, this time allowing for all the variables we'd listed, ending up with around 20 steps in the process. Not that we wanted to make the process big and impressive, but we definitely wanted to make sure that the quote would cover everything we needed to cover. We wanted to make sure that the profit we had in the quote when the client signed off ended up being the profit we put in the bank at the end of the project - the ideal quote. Looking at the process, we had that sense of satisfaction that comes when you know you've done something well. We knew that we had done everything we could to PROTECT THE PROFIT! We actually used that phrase, "Protect the profit" and the business owner jokingly considered changing business cards to show that as the title for everyone in the team. Not a bad thought. Taking the extra time to delve into the quotation process paid off for this client, just as it would pay off for you in your business. Not only is it best practice to consider all the variables in the job from the project management perspective, but you are only going to be paid for these variables if they're in the quote. And remember, if the client isn't paying for these things, you are. Learning from this true story it's easy to see the importance of carefully listing all the variables and all the risks that are in a process before you map it or write it down. Then you can check the final draft against all the variables and risks to make sure that your process has managed everyone of them. Any variables or risks you haven't managed are still sitting in that process and waiting to bite you when you least expect it. The time we spent to map out the process is being repaid with every quote sent. That's the way it is with great systems.   John Tonkin is the founder and Director of Brain in a Box Pty Ltd. Working with businesses to improve or formalise the systems that underpin their success is what Brain in a Box does. Brain in a box logo

1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Leave a Reply

Your email address will not be published. Required fields are marked *

Top Rated Articles

How your company can adapt to the Digital Revolution

Over the last couple of years, technological innovation has brought about a rapid change in the customer service landsca

LEARN MORE

Will Marketing Automation Help Your Business Grow?

Marketing automation software can benefit your business in a number of ways. It is a great way to increase traffic, enco

LEARN MORE

How CRM Can Maximize Customer Lifetime Value (CLV)

"Keep your customers always on the frontline," this is a key philosophy to running a successful business. Customers are

LEARN MORE

Recently Viewed

Build Your Corporate Identity with These Five Simple Branding Tips

Corporate identity. When combined, these two words seem so intimidating especially if you're an owner of a startup or ev

LEARN MORE

The Importance Of Risk-Taking In Business

People take risks all the time. Jaywalking is one simple example; you see the cars coming but you assess that there is e

LEARN MORE

How to create a 90 day Action Plan

Why you need an Action Plan   I'm going to talk a little bit about a 90 day Action Plan, because I think peop

LEARN MORE
  • Over the past 6 months the incredible team at MMP have supported us to shift our attitude towards our business & month on month our revenue is increasing to the point we will be able to employ additional staff to support our business goals long into the future. Do not regret our decision one single bit!

    • Emma Reece

  • Working with my coach has enabled me to see the areas where my business is failing. This was pretty confronting to me to be honest. MMP has the tools to improve these areas and the guidance on how to implement them.

    • Sharon Robinson

  • I have been working with Max My Profit for approx 3 years now, and over that time I have learnt a lot of things about not only what it takes to run a business, but I have also learnt things about myself. I don't believe i'd be the person or have the business I have today if it wasn't for Max My Profit and our Business Excelerator. Great team to work with if you want to take your business serious!

    • Ben Choy

  • As a new client for Max My Profit (MMP) it has taken no time at all to realise the benefits of business coaching. Despite many years of senior management experience starting a new business requires best practice systems and processes built on a solid platform of detailed planning. I look forward to the benefits of adopting the formula being shared by MMP.

    • Campbell MacLeod

  • Max My Profit Are truly awesome at what they do. They have helped me over the past 12 months to get off the tools in my business and start working on my business. I am looking forward to 2019 with enthusiasm not concern. Thanks so much.

    • Aaron Kemp

  • If you are committed to Growth the Max My Profit Team has the tools and expertise to excelerate all areas of your life. They Care, They Listen, They Understand You as an Individual first then they focus on Your business. Thank you Max My Profit my rating is a 6/5 - Kindest Regards The Mr Handyfix Team

    • Catherine Kavadas

  • The team at Max My Profit are an absolute pleasure to deal with. I love working with a team who is on top of what they are doing and have a clear view of what they are working on with you and helping ensure you get to the end goal.

    • Lauren Watts

  • I have been working with MaxMyProfit over the years and what they do for SME's in growing their business is fantastic. Also due to there knowledge and their supporting material for companies across the 5 lifestyle stages and assisting them through this process day in day out is extremely comforting as a small business owner and have referred them many businesses over the years.

    • Steve Laingy

  • Working with a business coach from MaxMyProfit has been one of the best things I have done for my business. I had several other coaches before MaxMyProfit but these guys are a step above the others. I have seen a significant increase in sales, now have a business that can run itself and the coaching program has paid for itself many times over.

    • Matthew Kitchin

  • Much more than just business coaches. There is an absolute treasure chest of business knowledge in their members site.

    • Iain Campbell

  • Max My Profit are unique as they really partner with you to develop and implement a plan that will drive success for the business. I was hesitant to proceed as previous business coaches tell you what to do and rely on you to implement.

    • Michael de Haan

  • I attended one of Max My Profits introductory events in Melbourne. Having been an accountant for almost 30 years, I was somewhat sceptical. Boy was I wrong. I not only enjoyed the presentation, but I gleaned so much from just that session.

    • Daniel Odd

  • These guys are an absolute wealth of knowledge for Small Business. The programme and support networks they have set up ensure learn more every day and can take your business from good to great. Thanks so much.

    • John Butler