You can start providing assistance by making your clients aware of the AA and change-order costs associated with their jobs. AA and change-order costs can account for 5 percent to 10 percent of the cost of a job, so this is a great place to start looking at opportunities for savings. To provide more value, tell your clients how they can avoid those additional costs in the future.
In addition to helping customers track and justify AA costs, you can help them track and analyze their annual costs. This helps them to understand the big picture and make decisions that are smarter overall.
Analyze the “Hit Ratio”
Compare the number of jobs quoted vs. the jobs won. When you analyze the “hit ratio,” you’ll be able to identify additional opportunities that otherwise might be missed. If you look carefully, you’ll be able to see patterns with the types of jobs that you consistently win and consistently lose with the customer. This can help your customer understand how to utilize your company better.
Make recommendations on how costs can be reduced. By looking at the big picture, you should be able to identify opportunities for changing specifications, gang running jobs together, adjusting quantities for better efficiency, etc. Detail these recommendations. Put them in writing.
You also might want to send a copy of your analyses and suggestions to the managers and “influencers” at the buying company, if they are not directly involved with this process.
Look for opportunities to make suggestions outside the job specifications. There could be ways to reduce inventory or shipping costs. And remember, money isn’t everything—costs may even become less of an issue if you can reduce the production cycle time and help them get to market faster.
Be part of your customers’ processes to track and control their costs, and you can safeguard your accounts by gaining the competitive edge in service, value and trust. PI