How To Convert Quotes Into Orders

CN MOULD & PLASTIC LIMITED
Add: CN Hi-Tech industry park, No.227, Xiangshan Rd., Luotian 3rd industry zone,
Songgang, Baoan, Shenzhen, 518105, China Website : www.cnmouldplas.com
Tel: 86-755-86060383 86060363 Fax:86-755-86060393 Email:sales@cnmouldplas.com

LinkedIn Groups

• Group: India Leadership Network
• Subject: New comment (1) on "I am having troubles in converting quotes into orders"

I hear you!!

I have faced similar situations but the services were different i.e I was dealing with setting up
corporate communications networks.
The case with us was, after discussing the initial designs the client use to request changes or
ask for other options.
The sales cycle went upto 1 year without any order coming out and after 14 months they are
still not decided on this.

This can be really frustrating and de motivating because you are investing a lot of your time
and resources .

The key I realized to deal with such a situation is focus on basics and get customers to answer
some imp questions like...

a) Is the budget already approved?
b) What are the timelines to implement this?( they will always say it was yesterday and trust
me if they answer that then its a sure shot hint that they have no idea when they need it. If they
were clear on this part, they will give a realistic time-frame)
c) What are the other process/depts that will get affected by this new technology, have they
approved the changes?

Once you have answers for these from your target group, i.e in my case IT folks then try and
reach out to other depts...for ex. if the IT team told me that the budget is already approved then
I would definitely check up with finance/procurement to confirm this bit, and don't be surprised
if you come across different versions of answers.

Likewise check with users, have they been informed of new technology change, are they ready.
If the answer is in negative then probably the team you are interacting with is still in fishing
mode and have not really freeze on the requirement.

Long sales cycle can be very challenging and it is very normal to loose drive.

Here I would say, treat this situation to your advantage. Build the relationship. Never stop the

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follow up. Always keep the engagement active.

Importantly from sales perspective, I think that if you don't get the answers to the above basic
questions, then never put such opportunities in your funnel as immediate closure. Put them as
cold pursuits, even if client says they are closing next day.

This will help you to focus on more prospecting, after all the success of sales starts from
prospecting, prospecting and more prospecting. Be sure you don't loose out on this part, just
because couple of deals sounded exciting.

Best Luck
Posted by Priyanka Singh

• Subject:: New comment (2) on "I am having troubles in converting quotes into orders"

Hi Amelie,

i had handled this segment in past, a few of my observations are as below this is more over
what Priyanka already mentioned since she has covered most of the stuff:-

1. Customer design changes is a long drawn process. As this calls not only for change of
components that you supply but also in related components.
2. out of may be 100 projects only 5- 6 projects actually see light
3. R & D loves developing new high end complex products and Purchase loves to cut prices.
and Sales wants to have best of both. this leads to complex intra company conflicts.
4. Do interact with the Sales and service dept also, as they can give you the reason for failures
or market requirement
5. The products that you supply are not stand alone, your design and quality along with prices
may be best, but related components that go with your product might not match your criteria

My Only suggestion is that all this is part of the game, hence dont loose hope or feel low after
all persistance pays
Posted by Mohd Khalid Saifullah

LinkedIn Groups

• Group: Supply Chain Movement



I can understand your disappointment specifically when you put in all the hard work pursuing
these opportuinities. But I can certainly say that these efforts are more like an investment and
will pay back when these prospect actually make buying decisions. They typically will feel good
for all your hard work even though they may not be able to make a decision now due to volatile
nature of economy.

Moreover, these are well meaning professionals who are trying to do their jobs in midst of ever
changing demands from their management. But all the positive attitude and relationships
you're investing in right now will provide a more than decent return once economy stablizes.

Keep the attitude positive and continue building the relationships.
Posted by Navneet Goel


I am not a first hand user, but I have heard very good things about www.mfg.com that includes
those types of features.
Posted by Gary Silver

LinkedIn Groups

• Group: Procurement Professionals (#1 supply chain & sourcing group)
Opportunities, network, career & jobs

Amelia,

In some markets it takes a long time to close a deal and in some markets its time-bound and
more process oriented. Based on the issues that you have elaborated, here is my 2 cents -
1] If some clients need to modify their 3D designs, then I guess, it would make more sense in
involving yourself more in their manufacturing process or in their product development effort.
To elaborate, it would be much better to position yourself as a "Partner" that will work with
them in their design process early on, rather than positioning your company/ yourself as a
Vendor who delivers to specifications.
2] If some clients turn to other priority projects then in order to have your project prioritized


perhaps more of a "relationship building exercise" is required. While constant follow-up can
sometimes be irritating, a one-on-one discussion with a client helps in furthering your cause.
3] Delays are caused by certain variable factors in your business that are beyond your control,
the economy slowing down is one of the biggest factors at the moment and I guess you gotta
wait for the right moment.

Good Luck...Rahul
Posted by Rahul Bhosale


Amelia,
I have been in the plastics business for 20 years, sourcing resins in Asia.
While overall the industry still looks at China and ASEAN nations as lower cost manufacturing
options - the industry is beginning to re-evaluate the real costs of extended supply chains.

Dropping domestic demand and a glut of idle molding shops in the US, are resulting in more
competitive quotes from local companies and in tough business for Chinese Mold & Die
companies.

The "hidden" costs of global sourcing are real - from supervisory time, to loss of control over
quality and materials sourcing, country risk, logistics, longer cash cycles, especially at a time
when uncertain demand makes "producing to forecast" a money-losing proposition.

I am working on a number of projects with customers who are bringing the molds back to the
US and sourcing the approved resins from Asia instead.

In my experience with companies in China and other Asian countries, the difficulties are the
result of poor understanding of how US firms operate and the business metrics used by firms
in the USA; many firms in China quote low prices but they do not offer adequate solutions to
the complications of global sourcing.

It does not help that a lot of times, US firms are also unaware of the complexity and inflexibility
associated with manufacturing 10,000 miles away - and they opt-out when they take a closer
look.

You may want to consider engaging a US based business consultant, advisor or
representative who actually knows the industry to help you craft your business solutions, so
you can target and pursue the right prospects and then close orders.


Best

Alex Perri
Posted by Alex Perri

LinkedIn Groups

• Group: Ford Motor Company


You need to sell them on the value of the product while at the same time creating a sense of
urgentcy.
Posted by James Hancock


I agree with James. You can't be an order taker. Build value in you product, but most of all in
yourself. Partner with your customer. You must be the "go to person" for your customer. Find
out how you can build his business and help him succeed. If can't show a customer the
difference between you and your competition, then it will always come down to price.
Posted by David Feller


Product needs, money saved, knowing your customers problems, presentations that are
question based, show interest and allow the customer to describe to you the benifits of your
product and the problems your product will solve for them even before you give them a product
benifit overview and address those needs that are not only the real ones but the ones that they
are most concerned about and really set their hair on fire causing them to act expeditiously.
Posted by Martin Noble


You need to take a consultative approach. Explore your clients' challenges and you'll be able
to match solutions to their business need. It's about growing relationships with your prospects
and this can take time so you might not land the business at the first meeting, but next week,
month or quarter if you keep up the tenacity, you'll be rewarded. Referrals will come from this


effort too as businesses talk about your competition beating approach. Good luck!
Posted by Marcus Frost


I once had a group from India who continued to ignore or not understand the importance of
meeting a schedule.-There was also a group from Pakistan in the same building, I told them if
they couldn't meet schedule I would have to consider to ask the Pakistan group to take over
their portion; From then on they met schedules.
Your problem may be a cultural difference (where they lack the understanding that they are not
sole source and things can change quickly)
Don't worry about offending them (You will be taken advantage of - if you let them.)
This is a global problem when american companies other than the Military do business in
Europe, Asia, South America, and In the USA.
Posted by Leonard Silvenis

LinkedIn Groups

• Group: CHINA SALES CLUB

Hi Amelia,

I too am in China and sympathise with your little problem.
I will be interested to see what others say about this as I too have been pumping out quote
after quote only to convert a small number into customers. My only thought for an answer on
this is that it takes time and patience, and a lot of emails/ phone calls to follow up on the quotes.

Simon
Aquatooth Limited, Jiangsu, Nantong.【江苏南通】
Posted by Simon Bradley


First:
Account Management is always that way. Do you buy the first shirt you see in a shop? or ask
for different prices and finally decide if you really need a shirt or you have to better invest in an


umbrella (if the summer is very rainy)
Second:
Customers put an eye in China basically for the price, so that is one of the most important
compelling reasons you have to take care of. Are your prices adjusted to the ones of your
competence? Do not think that the foreign companies just come here with their dollars to
expend them in a crazy way. They often have powerful and very professional purchasing
departments that you have to know and understand.
Third:
Synchronize your sales cycle with the customer´s process and very important, DO NOT
PRESS HIM (which is very usual in China and a suicide in the west)

Regards,

Alberto
Posted by Alberto Tapia [安普特]


It will help if you meet customers and talk face to face about value propositions.. Be selective
on your customer segmenation and try to sell 'packaged solutions" instead of products that will
be only one shot deal in most cases.. Make sure you can quanitify your differentiators
somehow.. If this sounds theoretical, it is, but it is acutually we are doing in our company now
to have 'sustainable" business in the long run.
Posted by Jonathan CHANG


I guess that talking with customers face to face is not an option for them Jonathan, but it is very
true that it is key.

Quantify key differentiators is key when they are, but again, with their kind of product the only
differentiator could be the price as quality and delivery are almost the same as the ones of
their competence...

At SAP it was easy for me to apply what you said, but now in a small business I have to say
that the story is VERY different.

Posted by Alberto Tapia [安普特]



Amelia,

All opportunities are being tied to 3 major factors for me. I named them:
1) Relationship
a) There is always an interest in the other party. Be it personal or work. You need to find out
what? If you can have face to face in person, you need to video call/MSN/Skype. This is better
than just email or phone. At least the other person know who you are.
b) Find out common contact points through peers or business related network. You might
know someone who have common network with that person or his/her network. Get linked and
introduce.

2) Win-Win Business Model
a) Strategise and Plan a business model to be competitive. Eg: To the extend to sell at cost as
an penetration plan if it is a major customer and worth it. You can always work out a Win Win
Buisness Model to propose to your management and at the same time have your customer's
attention.

3) Personal Rewards
a) Some buyers have other thoughts of reward. You need to find out how to go about to
manage such request.

If you ask for the most important...I have to say it is relationship! I always said that is most
critical in business because we all manage people and not business.
Posted by David Mak


This is a good thread, it helps me to take a step back and think about what we are doing. I
hope we can have more input, and some insightful thoughts.

I like being friends with my customers and suppliers and this is a good thing for making sales.

I get a real good feeling when someone has asked me for a quote, say a year ago then
contacts me again.

I have found when dealing with Chinese suppliers;
I ask for some pricing on a product so that I can quote a client.

The Chinese company then asks me every few days 'any good news' [as an example]


This really is useless as I do not know, and of course I will tell them or simply order when I do
know.. Actually it is very irritating as it simply disturbs my work flow with non-vital questions
that I cannot answer.

I would rather they take the approach:
'is there anything you need?' or just a chat about the weather, sports or some common interest.

keep this thread up and running with your comments!

Simon
Aquatooth Limited, Jiangsu, Nantong.【江苏南通】
Posted by Simon Bradley


I could write a book on this subject.
1st Why is the customer asking you for a quote ? ,,,, Asking for a quote does not mean an
intention to buy.

Until you understand why heshe is asking for a quote you shouldn't supply one.
Asking for a quote is easy for a customer and typically they have no clue the position this puts
the sales person in,
Is he shopping just to find out what current pricing is, is it a budgetary quote, is the person
asking for the quote the "Decision maker" or an low level engineer that thinks it is a good idea ?

Is the quote for a funded project that executive managers have asked for ?
What is time line of the project ?
Do you know your customers, his business, is the qupte something that they would realistically
buy ?
Have you qualified the RFQ with technical buyer , the user buyer, the economic buyer, The
decision maker ?

What is your competitive position ? Do you have relationship with account ?
I would recommend the Miller Heiman Sales training course.

A Quote means nothing unless it is fully qualified. Then you can acutally forecast against the
probality to close the order. If you are forecasting based on the $ number on the quotes. You
are setting yourself up for failure. Producing a quote means nothing. Remeber the 8020 rule
80 % of your business comes from 20% of your customers, Most of the time the 20% is the
customers you have the best relationship with.



nick
Posted by Nick Gullett

LinkedIn Groups

• Group: Retail Global Sourcing & Buying

Hi Amelia,

1/ before send out RFQ, you should have a clear "bid list" or "supplier panel" on hand for all
those parts that you are going to source, with the capability of which kind technology, BTP
(build to print) or FSS (full service supplier) ...

2/ then send out your RFQ with your data file to those part to be quoted. for BTP suppleir, you
need to reinforce the key points that you care for in the quotation; while for FSS supplier, it is
easy for you to care only the price in the end, of course, the less that supplier mentioned, the
better for you in the end.

regarding how to manage your supplier to work on your priority, it depends on your business,
your relationship, and your resource on hand...

hope it can help you to simplify your daily routines

regards

Alon LUO


hI aMELIA,
MR aLON GIVE YOU A VERY PROFESIONAL ANSWER.
I GIVE YOU A HUMAN ANSWER . I AM ASALE AGENT SINCE 27 YEARS.
YOU SHOULD BE PATIENT......
Posted by Michele Moscati



Hi Amelia

Ask your customers their opinion of your company and your performance. Many of them will
tell you if they are not comfortable and that is the most important issue.....they must be
comfortable with your company, your procedures and have confidence in your ability to
perform.

Just ask them, even if they do not give you an answer they will appreciate and understand that
you are concerned.

Bruce
Posted by Bruce Loveall


Mr Bruce ,
give you a good exsplnation price and internet don't make business.
Remember you are dealing with human been


Hi Michele

I am not sure exactly what you mean, but I am not suggesting the internet....we all have
phones and personal meetings;
Posted by Bruce Loveall


I just want to say many people are confident that throught internet and web you can find
customer but I think is very important us you say , the human relation.


I strong believe that business is business, but as a customer, mostly i prefer to have a good
relationship with suppliers who can be trusted/reliable with each other (even some wiseman


say that under the moneytary system, we can not afford the trust for each other). like Michele
mentioned, the good quality of human being. from supplier side, you should build up your
strategy with different customer, like purchasing guy did; but more important, you should sell
the most important added value, your personality, to your customer... not sure if you agree on
that but this is what i did
Posted by Alon LUO

LinkedIn Groups

• Group: China Business

Hi Amelia,

I have been thinking about this problem for China enterprises. People are hesitant to follow
through for many reasons. Some issues are with your control and some are not.

The things that are within your control are price, response, availabilty, turn around time and
credibility.

If you do all that you can do, then it is not your fault if things don't come together.

From the customer side, they are interested in a great price. Perhaps they have unrealistic
expectations. Regardless, no matter how low a price is quoted, they have to trust a Chinese
company that they do not know and have little recourse in case something goes wrong.

From your side, you have to trust that the customer will follow through.

I am trying to design a business model for Chinese enterprises to establish a local presence in
the customer's region ( a Chinese Manufacture's Clearing House) to facilitate orders, provide
customer support and distribution. This should provide comfort to both sides.

Perhaps it is time that Chinese enterprises change their model from a reactive (wait for the
customer to come to China) to a proactive (China reaches out to develop markets). Is it time
for China to reach out, combine and establish retail outlets in the West to promote and elevate
te reputation of Chinese goods and services? Reach out with satellite representatives outside
of China?



Jack
Posted by Jackson "Jack" Yuen


Jack is right, some things you can not control. In my experience, there is a lot of 'shopping
around' at the moment, buyers looking to see where the prices are best, even though they may
not place an order with any new supplier. If you keep doing what you do (excellent turnaround
and service), then you might get lucky with an order!
Posted by Ian Milligan


I would say kind of the same.
1. Many companies are asking for quotes even if they don't have actual needs (with the activity
reduced, the buying teams still have to get busy, right?) to keep track of the market pricing.

2. You might give many quotes to people that actually don't have the decision power. You
might do the same quote to 5 different people in the same company and still did not point out
the one that will take the decision.

Anyway, Good luck.
Posted by Timothee Semelin


Amelia, I have this problem, people want quotatins and not results. For this reason, I refuse to
do any work until I have a target price. A reasonable target price tells me the customer has
done their homework and is ready for serious negotiation. In my office...no target price, no
quotation.
Posted by Berryl Riley-Sawyers


hi Amelia, now almost any company met the same question.
the customers send us RFQ.after quotatiion.they did not give us any advance information.
mybe most of them have no order but know of the current market price.
Posted by Tony Liu



Tony,

The question is what are the manufacturers going to do about it? Get mad and blame the
customer? Put yourselves in their position. YOU are in the customer service business.

One poster above suggests treating the customer like a pest. That will lead to having a very
small customer base.

Instead, what can you do to help the customer? Earn their trust? Prove to them that you are
reliable and will stand behind your deal?



Jackson, some buyers want to use the suppliers/sourcing companies as a 'doormat'. Whilst
you're right that we shoudl prove to be reliable/ honorable etc, w ehave to beware that buyers
have a genuine interest in our quotations.
Posted by Ian Milligan


Ian

In general there are people who want to use other people as doormats. People have all sorts
of psychological issues.

That being said, what can the suppliers and sourcing companies do?

One issue I see on the B2B sites is that the contact does not fully understand how they are
perceived by the buyer. It is all too easy for a middle person to pretend they are in a better
position to deal with the supplier than they really are. Why should they be trusted? References?
Track record?

Heck, Ebay at least gives buyer feedback and scores.




Amelia, a pretty interesting question and I think Jack's point about China based company
turning from a farmer to a hunter is something that I had been trying to get to the sales people
in China for a while now.

Let me give you my view on why you have trouble converting quotes to orders :-

1. From your sales description, you are in what we called 'tactical sales" which is mainly based
on features, functions and price

2. You operate in low-mid level of your customer organizations which normally not where
decisons are made (....The people which I gave quote are Tool and Develop Manager , Owner ,
Purchaser and ect )

3. RFQ and tender - you are too late in the sales cycle because your customers already know
what they want at RFQ and that is why they beat you down on price

your trouble will persist unless

(1) You know how to upgrade from selling technology or product to a business value based
selling;

(2) Understand why your customers want to buy is more important than what you want to sell;

(3) A hunter, engage your customers early in the sales cycle and be proficient in engaging the
decison makers. Gaining access to the decision makers is useful unless you know how to
convert the access into value.

let me know if you have any questions.
Dan
Posted by Dan Jee

LinkedIn Groups

• Group: LInked Business Strategists


Hi Amelia,

It sounds like you need to qualify potential clients in a bit more detail (what exactly are they
looking for, when, etc)

The issues you write about are common in new business development. The idea of new
business development should be to open doors to future business which it sounds like you are
doing.

If you are targeted on actual business coming in, then you can use this information about what
normally stops clients from ordering to create a better qualification system and create a typical
sales tunnel, which will help you focus on what you need to do to bring in your actual targets
(e.g. if I can talk to 50 potential companies or share some basic information and ask some
basic questions I can see whether they are ready for the next stage of talking about specifics
then at the next stage, I know they will be a customer, its only a matter of when, and so on)

If you collect data on the different stages of the cycle you will very soon know how many new
companies you have to make contact with to a get a new sale in.

It seems like you may be doing it already but if you are not, try asking more questions from the
beginning - what is important to the customer - is it price, payment terms, quality,
recommendations, time to order fulfilment, ease at partnering, delivery terms, etc and rate your
company on each of those against their needs.

I hope this helps.
Sherwyn
Posted by Sherwyn Singh


Are you confident that your market is "direct to consumer" and not through a "distribution
network"? Wouldn't it be best to recruit more distributors in North America or, where ever your
market is?

Randall
Posted by Randall Montalbano



If I might ask, what exactly are your customers asking of you when they send an RFQ? What
information do they provide to you? Do they convey their estimated annual usage? Do they
request specific volume breaks, or do they expect you to determine them? Do they tell you
what the part is to be used for ... or what product it is to be used in? In other words, what do
you really know about their needs?

- Rob
Posted by Rob Verheyden


Hi Amelia,
I don't have years of experience to point to, just my own opinions, so keep that in mind.
You're probably so focused upon the individual RFQ's that you are missing the big picture.
Review ALL of the RFQ's & quotes for a given customer (successful or not) and look for a
common thread in the information.

The idea is not just to get the order, but to establish a long term relationship. If you pause to
answer some of the questions above and try to discover what you can do differently to
integrate your company into their supply chain, then you will have a better shot at
accomplishing this. Remember, it's not your supply chain, it's theirs ... and you need to do what
you can to make THEIR supply chain function as if it is one vertically integrated company.
Just my 2 cents.
- Rob
Posted by Rob Verheyden

LinkedIn Groups

• Group: 280 Group: Product Management & Product Marketing

Hi Amelia,
Try to determine if the comments are true or if your quotes are coming up short (price, quality,
speed, communication, kickbacks/discounts, special services, etc). This is not easy to
determine but you need to find out. If you are falling short, determining the truth is the first step.
I hope this helps, Dave
Posted by Dave Teeter



Amelia,

There could be many reasons why this is the case. One line of thought would be to look at how
much time are you spending with the customers before you send in the quote? Are you getting
quote requests after they have already been working with another supplier, and they are just
using your quote to fulfill the necessary "min 3 quotes" requirement? Even if your prices are
cheaper, there may be a dimension that is more important to their business that puts the other
supplier in the lead chair. Understanding that dimension and optimizing the quote around that
(quality, lead time, special services, etc) could help you win more orders.

I am not saying definitively this is your situation, but just outlining a thought process that came
to me as I read your question.
Posted by Timothy Johnson


There definately could be many reasons...but I think it all boils down to one single point that is
understanding your client.

This is what i understood from the case presented by you.
Posted by Prashant Bohra


Amelia,

Beside the fact that the projects you are working on probably have a long sales cycle and the
very good comments above, it could have to do with how you present your offer. Are the
proposals you send out professional looking enough? Tiny details can make all the difference
and send the wrong message. More generally, it seems to me that it would be good to
consider improving the overall marketing (market knowledge, supplier knowledge, customer
knowledge, offer package design, communication, etc.) at your company.

Good luck, Lydie
Posted by Lydie Chastan



LinkedIn Groups

• Group: Flextronics Alumni

Hi Amelia,

Call your customer and ask. Start by asking, "On a scale of 1 to 10, how do you feel about our
quote?" If their reply is not 10, you should ask "What would I need to do to get a 10?" Make a
record of what you have been told. Use this information to improve your quoting process. First,
start with your lost customers (orders). HTH.

George
Posted by George Mundy (george.mundy@skilledengineer.com)


Hi Amelia,

George is right. During the process BEFORE you are preparing RFQs, you need to ask many
questions about expected quality levels, expectations on finishings, even offering to
understand their vision and provide some alternatives that are either nicer or less expensive
(and more profitable for you). Also figure out who your REAL competition is befpre hand so
you start understanding how they are quoting, who is winning bids for what kinds of products.
Know also what the criteria are, the priority, low cost? (usually), in house tooling capability?
free prototypes? Keep a spreadsheet of your bids, your proce, customer details and get as
much feedback as to what you could have done to win the bid. Overtime, you will have better
intelligence about how to quote.

If you are dealing with Westerners, they will give you a whole lot of feedback afterward, as
George suggested. If you are dealing with Chinese, say, see if you can work any of the
relationships to get intelligence on the other bids. And of course, your chinese customers may
be looking for some hui kou.

Good luck!
Posted by Greg Collins 雷轲林



Hi Amelia,

Know customer priorities and provide solutions.

For some customers ( Healthcare?) quality is imortant, cost is not . While for others
( Consumer electronics?) time to market may be the first priority. So try to treat these
businesses differently and quote accordignly. If you loose, at lesat try to understand why.
Geroge has given a great suggestion on the feedback process and improvement.

As Greg mentioned overseas market (US/Europe) feedback would be easy and direct while
'guanxi' should help with Chinese/Asian customers.

Presevence is important.

All the best!
Posted by Chandan Sethi

LinkedIn Groups

• Group: Society of Plastics Engineers, Inc.

Amelia-

Depending on the industries you are quoting to, the engineering development cycle can run
upwards of 18 months or longer before a company is ready to cut steel. My best
recommendation as a product manager who evaluates potential vendor sources would be to
make sure you show your ability to provide value-add service early on in development. Ensure
you are looking to do tooling and mold feasibility reviews even after an initial model is provided,
since models can go through several iterations before finalization. Do you have mold flow
analysis capability? What about rapid prototype development?

Being proactive and understanding what a client is looking to accomplish will go a long way in
terms of consideration. While cost is certainly a key aspect in awarding the business, it is
always important that any vendor demonstrates the ability to be supportive, knowledgeable
and flexible in any given application. Your statement regarding living with less than perfect
quality is somewhat alarming... effective product quality planning will help overcome problems


that may be encountered, and offers that knowledge and support base that I just mentioned.
Better to focus on that than to just throw in the towel, as your remark seems to indicate.

I hope this helps you out. Good luck with your future endeavors.
Posted by Matthew Paciorek


One of the key things in today market is to have a person who is close to the market your
selling into.

The trend in the Uk is to move away from going outside the UK for new projects. OK costs
have been a big thing in the past, but at the moment clients are looking at more just in time
suppliers, they are cutting there stores and not holding stock. Tooling for some projects have
been copied so it a trust of all suppliers now. and more and more companies are supplying
shorted lead times in the UK and able to send a REP the same day to discuss new projects.

Maybe its work looking at taking over one of the companies in the UK that are closing, who can
lead up the market for you over here, or get an experience Technical Sales engineer to work
for you.

If your interested in talking with Technical Engineers who could cover the European markets
for you, let me know and I could supply you with suitable candidates or I do know some great
tooling companies looking for developers

Nigel
08707008877
Posted by Nigel Hyde


Amelia- Matthew makes some very good points. I read your comment regarding living with less
than perfect differently, however. I got the impression you were speaking more of market
conditions, than of product quality.

Regardless, to respond in a more generalized manner, I believe there are three major
considerations that always enter into any sourcing endeavor.

1. Total cost is certainly high on the list. That deals not only with the landed cost per piece, but
also the engineering and marketing costs which must be amortized into the product, in order to


determine the profitability of the project. A major concern in costing any off-shore sourcing is
the price stability. Nobody likes surprises.

2. Capability of the vendor is also a key factor. This includes developmental capabilities,
flexibility to meet scheduling requirements, lead time for deliveries, and quality control issues,
among others. The general perception of the customer of your capabilities will contribute
greatly to his confidence level.

3. The services that you can offer, both initially, and on an ongoing basis. This is an area that
contributes greatly to the value perception of your offering, and will bolster the confidence level
necessary for the relationship.

I have found that "partnering" with the customer gives me the greatest advantage. I put all my
capabilities and services at their disposal, and I tie my pricing to my achieving the goals set. If
we fall short on quality or delivery, there are penalties that benefit the customer. Meeting or
exceeding those goals is imperative, in order to activate the time-driven price adjustments that
are clearly spelled out in my contract. I also offer incremental cost cuts based upon increased
demand. No surprises for anyone.

In this fashion, I leave the customer with that "warm fuzzy feeling" that my goals are the same
as his...successful, on-time production of a quality product, at a fixed cost. That establishes the
relationship that I feel is essential.

I suggest you evaluate your cost, capabilities and services offerings, with an eye toward
featuring each in the most favorable light. These are essentially the three major aspects over
which you can exercise control, and it's key to not only optimize each, but to optimize the
PERCEPTION of each, in the customer's mind.

Best of luck to you, Amelia.
Posted by Sheldon Campbell

LinkedIn Groups

• Group: Get It Made!


You have come to the wrong place if you are expecting any sympathy or assistance in your
situation. We are all in the same boat - alot of quoting with few orders, except most of us in this
group operate in an nation that requires adherence to strict environmental, safety and human
rights laws. Also, we don't have the benefit of currency manipulation to assure we are the low
cost provider. The only way we can achieve low costs is by driving out waste and improving
efficiency.
Posted by Garth Dexter


Amelia,

Unfortunately, the present economic issues seem to be worldwide and we all find ourselves in
the same boat. We are just working folks trying to do our job. I would like to encourage you by
saying that nothing is forever and circumstances do change. Make sure your products are
relevant in the industry and price competitive. Keep trying and never give up.
Posted by Elena Fernandez

LinkedIn Groups

• Group: YQ Purchasing

Hi Ameila, you sound like you are running into the problems that the EU and US has dealt with
for a long time.

Until recently, many companies used local sources for R&D work, passing the volume to you
but more recently, the local suppliers have been going out of business because you can't run a
company just on R&D.

You need to try and get a road map of what they plan to do, or agree a minimum commitment
or payment for work. Also arrange for an initial face to face meeting for each contract, with
agreed milestone updates; lots of telephone calls and video conference time, don't rely on
emails and CAD updates. You need to understand their ideas. See the discussions on having
problems with overseas suppliers:

http://www.linkedin.com/groupAnswers?viewQuestionAndAnswers&discussionID=3848447&g


id=58800&commentID=4034575&trk=view_disc

regards
Posted by martin hogan


Hi Amelia, it's the
supply chain management group.
the
Council of Supply Chain Management Professionals - GVRT
is also having a discussion that includes this posting:
http://knowledge.wharton.upenn.edu/article.cfm?articleid=2252/NJQ8/

I've seen a number of projects moved to new suppliers because a company wants better
results but they often never understand quality, which is obviously the core of any operation.
regards
Posted by martin hogan

LinkedIn Groups

• Group: Link to China

Hello Amelia;

did you try to visit or call these potentials after you quotations, maybe it will help to know you
and the company better?
Posted by Roger Van Der Linden

LinkedIn Groups

• Group: Sales and Marketing Professionals Promoting Israeli High-Tech in the USA
(2000+ Members)


Hi Amelia!
I recommend you to hire a marketing advisor to analyze your sales process.
Posted by Rami Gal


Amelia,
I am not familiar with your sales process, but rule # 1, meet with your customers & prospects
and learn their changing needs better. Hope this may assist to shorten your sales cycle.
Posted by Doron Averbuch

LinkedIn Groups

• Group: connect, share, trends, best practices 4000+◊excellence in
procurement◊Buyers-World

0Today’s market is revealing new potential and opportunity. Unfortunately this means
research / development (=Quoting) gaining an understanding on how to re-invent/Survive. I
believe "Consumer Confidence" is @ play.The orders should come back when the "Crisis" is
over....
Posted by Rick Passaretti


How To Convert Quotes Into Orders

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