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Nov 07 2011

Accurate Estimates Equals No Surprises!

It all comes down to accurate specifications!  The better the detail, the more accurate the estimate!  No one likes surprises; particularly when it  comes to final pricing of a project.   Providing as much detail as possible at the quoting stage is a key to providing estimates that will still be accurate when the production process begins.

Often times, the initial request for quote is referred to as “budget” or “ballpark”.  Allied Bindery will provide a quote that is accurate to the specifications that are provided.  In some instances, the actual job
requirements can be significantly different than the original “budget”
estimate.  If the purchase order contains different specifications than the original estimate, the estimate will need to be validated or revised.

Many times, specification changes may have a slight impact on final pricing.  It may be that the basis weight of the paper was changed, resulting in costing and pricing changes in the amount of adhesive, cartons or shrink wrap film that is required.  These are generally minor revisions to cover
material costs.  Sometimes, the change may be significant.  For example, a
binding project could have been quoted as two-up.  In reality, the final project could be a come & go format, having a significant impact on labor costs.  Maybe you will need a partial quantity bound and delivered before the balance of all material is available.  This will have an impact on set up costs, since an additional set up will be required.  These costs tend to be higher and need to be communicated to your customer as soon as possible.

In all cases, when a project becomes live and a purchase order is provided, our Estimating/Order Entry specialists will review the scope of the purchase order in comparison to the original estimate.  If any changes or revisions are required, you will be contacted prior to the start of the job so that you will have any updated pricing that is required.  It is important to note that all estimates are tentative, pending the actual specifications for a project.

 

Written by Allied · Categorized: Estimating, Helpful Tips

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32501 Dequindre Road
Madison Heights, MI 48071
Local: (248) 588-5990

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32501 Dequindre Road
Madison Heights, MI 48071
Local: (248) 588-5990
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