Do you keep track of all of your project quotes?
In our last article (Read part 2 – click here) we discussed preparing simple quotes. In this article we are addressing more complex project quotes, the type required when quoting on a project or a larger job.
The same principles apply for larger quotes as detailed in our last article, including;
- Preparing the quote within your application
- Adding the parts or items used
- Preparing the quote faster (because it is easier)
- Sending the quote by email (with a print option as well)
- The customer’s acceptance (of the quote along with your terms and conditions)
- Along with the optional ordering of stock items required for the job (tracking all items for each project, and automatically recording your profitability for each job)
- And importantly, recording all of your quotes (meaning you can follow up on every quote / that will mean more profit)
Complex quotes for projects or larger jobs
Now here are some really helpful tips which make preparing detailed quotes simpler and easier.
Firstly, break the project down into separate identifiable parts or locations.
This might require several levels depending on the scope of the project, for example:
- Plot number (where multiple dwellings)
- Floor number
Where stock items are required for a job, you will already be adding each of these into your quote and you will also want to be adding a labour charge. This might be calculated on an hourly rate when preparing simple quotes, but for more complex projects it is most likely be based on a daily rate. This still takes time to calculate. A helpful tip is to add a labour charge component to each stock item that is used on the project. This can be based on the number of minutes an average installation of each product item should take.
This way, when you add each stock item a labour charge will automatically be added as well. The more items added, the greater the labour charge.
Add materials / stock items used on the project
When adding standard stock items to your quote, just by beginning to type the name of the name of product line and selecting it from a drop down list,
at the same time this should give you the option to select;
- Select the quantity required (in each location)
- Select the supplier
- The retail sale price, the purchase price, the delivery lead time and the installation time should all be added automatically.
Global edit / updates to the project
The ability to add items globally (into all similar locations at once) can save a lot of time. Similarly it will save a lot of time if you are able to prepare one specification and copy this into different locations. For example, if you prepare the specification for the design of a house and simply copy this for all of the other houses of the same design.
This makes preparing your first draft of the quote, comparatively quite straight, as all you need to do is add the items to be used.
Now when looking at an overview of the initial costing, firstly you should be able to see an overview of the pricing for each location within the project as well as an overview of the entire project to assess the overall costing.
You might now need to make adjustments for circumstances particular to this project, so it is helpful if you can make global updates (where you adjust any one of the items in any of the locations and it updates all of the same item everywhere else for the project;
- Update a standard cost price (because of the quantity you have negotiated a special deal)
- Amend the installation time because it might take longer than usual
- Globally update the sale price of an item based on a target margin, for example, you might want to make say a 20% margin on the product line.
Send the quote
Now you are ready to send the quote to your customer.
It might also be helpful if you can access a copy of the detailed calculations and pull these down in a spreadsheet format.
There are many other benefits of preparing your detailed quotes within your application including, controlling the cash outflow for the expenditure for the project and measuring the progress of the installations for interim certificates and interim billing.