Ok so after this I will shut up.
One thing I didn't include.
We rated projects A, B, C, D and E. The ratings helped determine risk.
"A" projects. No risk to us or the customer. Basically the same as other projects. Reduced margins because they could be turned out quickly with little chance of complications.
"B" projects. Low risk. Typically minor changes to a previous build. Sometimes a new customer. Standard margins.
"C" projects. Custom builds with known components but per customer specs required additional design time along with increased debug time. Slightly higher margin in the price build up. About 2-3%.
"D" projects. Here's where it get's a bit intense and really needs close review by the builder and the customer. Many new components. Many new design ideas. Extended delivery times based on new design and debug time. Again increased margins to cover (hopefully) the unknowns.
"E" projects. We just say no in the best possible way. If the customer offers more money but the project scope doesn't change again the answer is no. I can't stress that enough, don't be tempted with more money it could kill your business and even worse create a very unhappy customer.
On all C and D projects we had staff meetings twice a week if needed to review those projects. That meeting included engineering, production and service. As sales people we were expected to bring the best information to the meeting. Customers were invited to attend to help determine the best solution. So of the best projects were when the customer was very engaged.
I hope I don't come off a as a "I know everything" about machine building. Just want to pass on what has worked for me in the past.
Again I hope this helps bot the customer and the builder.
|