Sales Estimating for Sales, Operations and Your Customer s Success

Transcription

1 Sales Estimating for Sales, Operations and Your Customer s Success Tracy Larson, President, WeSuite John Palumbo, Vice President, UTI 1 Learning Objectives Establish consistent methods and practices for sales estimates. Learn how to think the job : Job Phasing Time, Manpower, Purchasing Labor Planning: labor types, labor tasks Other costs Identify key words and clauses for answering RFPs, reviewing project drawings, contracts and documents. Write excellent Scopes of Work and Technical Reponses. Take home: 5 Best Practices to improve sales success within your organization. 2 2 Exercise 1 Jump Right In!! Your company, Excellent Integrations, Inc. has been invited to respond to an RFP. Make the Go or NO GO decision to bid the job. Table Discussion: 8 Minutes read the brief on scope of work. Decide are you going for it or not? Be prepared to discuss: 1) Why you made the decision. Key influencing factors. 2) Identified Risks

2 Keys to Successful Sales Estimating Read, Discuss, Clarify, Understand SOW Identify Risks Identify / Determine Company Strategy Level the Project (Estimate) Process: create the Response Final Price the Job Response Submission Prepare for the Presentation 4 4 Exercise 2: 20 minutes Review of ABC Pages Groups Review the Security specific contractual provisions. Be prepared to discuss: 1) Items identified as In Scope any RFIs?? 2) Key Response requirements 3) Major Job Components 4) Specialty Cost Items required & effect on Project Cost 5) Exclusions/Clarifications Identified 6) Words/Phrases to be careful of circle what bothers you 5 5 Key Element 1: Your Estimating Team Sales Engineering Estimate Executives/Finance Project Management 6 6 2

3 Estimating Team how it works Customer Relationships Vendor/Suppliers Bid/Project Docs/Specs Subcontractors Response Due Dates Presentation Good Cop Drawing/Spec Review Device Take Offs Backbone/Risers Infrastructure Rqmts Labor Costs Specialty Items Bad Cop Sales Engineering Executive Management Project Management Scope Review Budget Review Resource Review Schedule Review Relationship Review Bad Cop Scope/Spec Review Doc Review BOM/Device Plan/Layout Review Resources / Subcontractors & Hours Review Technical Overview Schedule Review 7 7 Key Factors 2: Leveling A. Take Offs/BOM Consistent Method/Documentation Centralized Parts Database Use Technology Tools Goal: Accurate BOM & Pricing B. Labor & Resources ID Labor Categories Labor Rates Labor Tasks for Completion Hours Required Contingency D. RMR Services C. Other Job Costs Key Offerings Differentiators Profit Boosters Relationship Boosters Stickiness Travel Permits Bonds/Insurance Subcontractors Training Safety Personnel Taxes 1 st Year Guarantee/Warranty 8 8 Key Factor A: Take Offs BOM Project Document Review & Coordination RFI submissions & RFI Reviews System Component Breakout & Device Counts Bill of Materials Development Internal Reviews Sales, Engineering, Project Management, Operations, Purchasing Management 9 9 3

4 Key Factor B: Labor/Schedule Relationship Critical: think the job Identify Project Phases & Scope Per Phase Man Power Loading Types of Labor Field & In house Subcontractor Purchasing Required Schedule Overall Key Milestones, Dates, Phase Length Completion items for each Milestone Responsible Resources Coordination Rqmts effecting time/resources Billing Dates % Complete Per Phase AIA Submission Pencil Copy Hard Copy Key Factor B: Labor Resources Best Practice: Establish your RFP for Subcontractor Pricing 1) Clearly Define Project Scope of Work 2) Define their Scope of Work 3) Define their Deliverables 4) Define Schedule 5) Provide Unit Pricing Form Best Practice: Estimating Consistent Estimating: Methodology Process Documentation

5 Key Factor C: Other Job Cost Items 1) Bonds 2) Additional Insurance 3) Safety Personnel 4) Job Photographer 5) Shipping/Deliveries 6) Job Site Conditions: Elevators/Other 7) Training Certifications 8) OSHA or other requirements 9) Taxes Key Factor D: RMR Services Managed Services Access Control CCTV Badging/ID Services System Engineering Highly Profitable Creates Account Stickiness Key Factor: Added Value Differentiators Quick Group: Name 3 Value Added Services you provide after the Project is done

6 Key Factor: Pricing & Presentation Device Counts/Pricing Organizational Resource Requirements External Resource Requirements Additional Costs Contingencies Think the Job Project Closing Plan starts here Key Element: SOW / Technical Response Writing the Scope of Work &Technical Response Create your Base Canned Document Outline: points specific to this project Your defined Scope protection Requirements for this Project Process Plan: Time Review Sessions Editing Final Production/Printing/Collating What are your Key Differentiators? Think of 4 Key Differentiators your Team provides Customers

7 Senior Project Manager 4/9/2015 Key Differentiator: Project Team Excellent Integration Project Team The XYZ Project Tracy Larson David Samuels Project Executive Pete Jones Harris Moore Mike Garrison Laurie Noone Karen Lynons VP Engineering Operations Director Director IT Services Project Assistant Procurement Donna Radeish John Matthews Brian Westerly Frank Georgio Robert Shaw Greg Thames Paul Right Ben Hicom System Engineer System Engineer Pre Fabircation Sr. Technician Site Foreman IT Specialist Billing Coordinator Job Site Delivery Gina Thomas Susan Kidd Tony Kimbs Joe Richards Leslie Michaels CAD Specialist System Engineer Pre Fabrication Technician Shift Supervisor Rudy Peters Foreman 1 Foreman 2 Foreman 3 CAD Specialist Shift 1 Shift 2 Shift 3 Crew 4 6 Crew 8 10 Crew Final Key Element: Presentation Exercise 4: Team Response Group Exercise: 20 Minutes 1s Sales People 2s Project Managers 3s Engineers 4s Project Executives Object: Create the final response. 1) List Key Differentiators 2) Create Technical Response Outline the items to include Indicate total time need to finalize Describe review process 3) Assume BOM is complete: Create one line item Unit Price for a Camera and another for a Single Card Readers Door to include all costs: (equipment, wire 250 run, labor all types, programming, shipping, insurance, etc.) 4) Define Exclusions and Clarifications 5) Presentation what you will include for your Presentation

8 Best Practices Established Go No/Go Strategy A Core Team Plan Repeatable, Consistent Process for Estimating Establish Your Project Technical Response Team Estimating Technology Tool Labor Category/Task Estimating Process A Bench Mark Technical Response Established Review & Approval Gateways/Process Internal Kick off / Handoff Sales: Part of Delivery Process Established Change Order Process Key Relationships Questions, Answers, Taking it Home