Having a Poor Pricing Strategy is the Same as Putting a V8 Supercar on Track Without Tyres

Having a Poor Pricing Strategy is the Same as Putting a V8 Supercar on Track Without Tyres

Set your price through a data driven approach, not guesswork. You can’t win a race without performance measurement

When it comes to setting up complex jobs it’s important to get a thorough understanding of all the pricing complexities by trapping the critical components in your customer relationship management (CRM). It’s important to understand what’s involved in every facet of the job function, so that you can ensure you are providing the customer with exactly what they’re looking for. Using highly defined and unique customer setups allows you to deliver a detailed risk analysis prior to quoting or creating standard rates of delivery for your customers. And not every customer relationship management stands equal to this task.

Getting a V8 sports car on track comes with risks and rewards. Make sure you understand the business of racing before you start. Quoting complex projects and jobs is really no different.

There are a lot of moving parts in the specialised services industry, those companies we work with every day keeping the world ticking. Whether they are pumping concrete, reclaiming waste, cleaning drains, creating subdivisions or building roads when you are tendering or quoting new works every moving part needs to be priced to ensure profit. 

This is particularly important when your business is priced on simple constants like an all inclusive  hourly rate, cost per kilometre, product metres delivered, or weight removed. The more risks that are involved with the job, the more important it is to understand what is involved and to ensure that nothing is missed.

A V8 racecar is a complex piece of equipment where a failure in one small part can mean the difference between success and failure. The team needs to be united to ensure that the car setup is spot on!  Data is at the forefront of decisions and your customer relationship management should be like the telemetry system for a race team.

If you want to have a thorough understanding of every job and every customer then you’ll need a system that can provide visibility over your business at all times. Having access to data at your fingertips means you’ll be able to make decisions based on facts rather than guesswork. 

With a comprehensive customer relationship management tool you’ll be able to deliver intelligent quoting and profit driven decisions that ensure your customers get what they have paid for in a timely manner. With our one-system approach you’ll be able to gain a thorough understanding of your customer’s needs as well as an understanding of the risks involved because every job is another piece of data that can be fed back into the CRM. This will provide detail to improve quotes and tenders that can make sure no “gotcha” is missed, costing your business dearly through delivery.

Quality Estimating and Pricing puts you in pole position.

customer relationship management crm kynection

When you rely on paper-based systems to complete complex setups and quotes you’re adding an administrative burden to your business that isn’t necessary. If you’re currently using a paper system to manage estimating, pricing, and CRM then you’re probably frustrated with the lack of visibility and inefficiency. You’re actually starting every piece of work from the back of the grid! It’s easy to get the numbers wrong and it’s easy to miss small errors that could hurt when trying to close the deal. So what’s the solution?

Running a V8 supercar requires precision and accuracy, just like estimating. Is it better to leave it up to chance, or to have an integrated system that can provide you with information you need?

Using customer setups to determine rate cards based on payment risk, the equipment type, job complexity, materials required and more, means that any risks or discounts are built into the job based on the risk appetite for the customer.

It is easier to remove the likelihood of profit erosion if you can manage all customer jobs against the quote line items built within your CRM. The quote or estimate becomes the job and your breakdowns within the quote become the measurement for success. Labour, Equipment Utilisation, Materials Costs, Tools and Subcontract works all need to be quoted and then accounted for. An integrated CRM provides a backbone to delivery, which in turn becomes the knowledgebase for future works. 

V8 supercars have to be built to the correct specifications… If they don’t, they won’t be able to start on race day. How is this different than defining the specification for success within your business, so your teams are given the best tools for the job?

Pricing can be provided to your customers’ specific needs with a paperless CRM system. This can include unique projects, fixed ongoing works, region-based works, and more. Having the critical information you need in regards to rate, right down to the nuts and bolts, means you can simplify the estimating and quoting process to ensure a smooth delivery for all involved.

Tracking data gives feedback and factual evidence for better decision making on the fly.

customer relationship management crm kynection

Business costs need to be thoroughly understood to ensure the profitability of your business into the future. You need to be able to your customers that your business is capable. and can be relied upon.

If the customer isn’t sure if your business is capable, why would they risk their business on you? Make sure you are clear what tyre pressure is needed before you rush to get on the track!

Being able to provide historical evidence and reports using a paperless customer relationship management system means you can assure new customers that you can fulfill their needs. It is easy to resolve any concerns clients have when data can be provided immediately and is accessible from your computer, tablet, or phone.

For industries that require investments in people, equipment, and machinery to make money, you need to have a thorough understanding of costs and measure these while in the job in near real time to avoid blowouts. This process forms a cyclical business improvement process that works just like the links in a racing team.

Historical data is useful, even when building a V8 supercar. Don’t let a lack of information prevent you from creating a winning car and effective race team.

Historical data strengthens the accuracy of pricing and provides a strong method for quoting new business opportunities through the power of a systematic approach. Information ensures that your sales team have a thorough understanding of how client pricing works, so they have the confidence to quote and close deals and ensure the outcome is a win/win for company and client. 

When you switch to an integrated system for CRM, pricing, and estimating, your business will quickly see a massive improvement in efficiency and productivity throughout your primary functions. You’ll be able to generate reports from the palm of your hand, access historical dashboards to find the data you need, and store all required documents in the cloud so you can download them whenever you need to.

Don’t let the administrative burden be the downfall of your business. If you want your business to run as smoothly as a V8 Supercar on Race Day then you need to have a system in place that can keep you on the track from start to finish!

© 2022 Autolync Pty Ltd, trading as Kynection

Request a Demo