Are you responsible for bid pricing for automation systems? Whether it's for a tender or not, I am part of the "Sales & Proposal" team with a unique approach to determining final costs and creating technical proposals. I believe exchanging various strategies and insights on pricing would be valuable and engaging.
My employment contract prohibits me from disclosing confidential information, including the use of company spreadsheets that calculate burden rates based on skill levels. I have also utilized a standard percentage markup for pricing. Additionally, the SWAG method, which is based on experience, is used to validate the accuracy of the spreadsheet calculations.
Allow me to clarify our services: We specialize in comprehensive design solutions, encompassing the creation of hardware and software lists along with the allocation of manpower for both. Our hardware list includes essential PLC components and accessories such as cabinets, wiring, and operator desks. Due to time constraints, we often find ourselves working under intense pressure. I am curious to know if other companies offer similar services.
Automan explains that their services include complete design, hardware and software lists, as well as the necessary manpower for each. The hardware list comprises PLC components and accessories like cabinets, wire shoes, and operator desks. Due to time constraints, Automan often works at full capacity. They are curious to know if other companies offer similar services. Click to expand for more information.
When providing quotes for a project, I follow a systematic approach to design. This involves selecting the necessary automation components and determining the man-hours required for building, programming, installation, debugging, and documentation. The estimation of man-hours is typically based on factors such as the number of I/O points and the size of the equipment. Additionally, programming man-hours are influenced by features like recipe management, production data details, and data collection, in addition to I/O points. Some individuals base their quotes on the number of rungs in a program. I always include a miscellaneous column in my quotes to account for any potential deviations between the initial concept and the final product. I aim to avoid asking clients for additional costs unless there are significant changes. While this method works well for small, single-cell machines, it may not be suitable for larger-scale projects or production lines due to the potential for increased time and expenses. In such cases, an alternative estimation process may be more appropriate than relying solely on actual I/O counts.
jstolaruk clarified their query regarding providing a quote for a customer. We specialize in rapid detail design followed by an accurate pricing estimate for clients. As Rob pointed out, this process can be particularly challenging for large-scale projects.
As a project manager who frequently interacts with the "Sales & Proposal" team in my organization, I find your approach intriguing. More often, technical aspects are given more weight than cost factors. However, striking a balance between the two and making an effective proposal that accommodates both can be quite the task. So, I am curious about your unique bid pricing methods and would love to exchange ideas! It's always insightful to learn from different perspectives in the field.
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Answer: Answer: Factors such as project scope, complexity, resources required, competition, and potential risks should be considered when determining bid pricing for automation systems.
Answer: Answer: Developing unique strategies for bid pricing involves understanding customer needs, analyzing market trends, optimizing costs, and leveraging technology advancements to create competitive proposals.
Answer: Answer: The Sales & Proposal team plays a crucial role in analyzing requirements, assessing project feasibility, estimating costs, and creating technical proposals that align with customer expectations and business objectives.
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