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Estimating
for Profit
The
Service Estimator™ database is designed to reduce the probability
of inconsistent pricing of maintenance proposals and projects. The Service
Estimator™ automatically prepares your proposals, and is also used
for tracking proposal activity and sales.
In
addition, the many reports are designed to assist the
operations department in planning their labor and materials needs. In fact,
part of the estimating process requires you to
establish certain criteria regarding a
buildings HVAC operating characteristics. And,
it allows the sales
reps and service managers to evaluate the proposal cost before it is presented to a customer.
In other words, double-check the price to see if it makes sense.
Using
Service Estimator™ also encourages communication between the sales and
operations departments. Both will need to be in agreement on what
maintenance service and small retrofit
projects should sell for, thus reducing the risk of low profitability.
However, the operations department remains completely responsible for the
profitability outcome. How they manage the cost of service agreements and projects
is the determining factor of successful margins.
The
estimating process must include "Cost of Ownership" verification
in order for maintenance proposals
and small retrofit projects to be sold correctly. Review the estimating module for further information.
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