How to respond to price quotes faster with the right optimized price

The lunar new year will bring back the dragon…specifically the wood dragon, and its symbol of power and prosperity. According to the Chinese Zodiac, it’s the perfect time for growth and setting the foundation for long-term success. As an electronic device or component manufacturer, you are experiencing fiery competition and the need to power up the speed at which you respond to price quotes.

Responding to requests faster than your competition is a real differentiator and will set you up for success. 
First-mover advantage is as relevant as ever in the high tech industry. Speed has proven to be a valuable competitive advantage, whether you’re developing and launching a new product in record time or doing something as seemingly mundane as quickly responding to a quote request from a prospective customer. 

Although it sounds basic, the importance is significant because, as the saying goes, it’s no longer the big that eats the small, but the fast that eats the slow.

One does not need the size of a dragon to have the power of a dragon: Speed is a powerful factor

A quick response to a price quote can signal to a prospect how efficiently you run your business. Not only is response time a factor, but also quoting the right price is critical to your overall business. Both factors create a strong first impression and show that you operate efficiently, improving your chances of winning the business. Unfortunately, a long quoting process is all too common for many ECM manufacturers and distributors. Much of the time, delays occur due to the use of spreadsheets or outdated software.

Determining various costs, payment and commercial terms, rebate and debit agreements, and then engaging for quote reviews and approvals can be consuming and daunting. So, how does your system measure up?

There are sleeping dragons all around you

Anything you can do to get ahead of your competition will take friction out of the process and lead you on the path to success. Let the competition sleep on their quotes while you complete the process in a few days. What would it mean to your business if you could reduce your quote cycle time by one-third or maybe even half? Manufacturers that are supported by a software solution that manages the entire lifecycle eliminate manual processes and give your team the ability to respond faster and more accurately. With lifecycle support comes efficiency and transparency, taming the back-and-forth reviews and closing the deal with approval much faster than your competitors who are still working with manual processes.

Pricing optimization and making sure your final quote is accurate and on time requires additional support through your software solution, including the ability to:

• Make product updates and functional improvements, resulting in flexible and quick reaction times to new opportunities/changes in the market
• Support all business processes with the required level of accuracy to make decisions in real-time
• Access in-depth reporting on business insights required for price optimization at the rate of change the industry demands and with the ability to utilize a rules-based engine that has ML/AI capabilities

The head of a dragon, the tail of a snake

No team wants to start strong and finish weak. You want the entire process to flow smoothly, including your internal approval processes and evaluation. Regarding systems, sales teams are typically the most comfortable and efficient when using their CRM software to track opportunities. You’ll want to consider a solution that seamlessly integrates your pricing engine with your CRM for one streamlined, seamless interface to speed up negotiation and contract cycles and eliminate errors. With immediate access to pricing and contract information, your sales team can negotiate and execute in real time with customers. 

You also need an efficient price review and approval process to reduce turnaround time. It’s essential to implement a set of meaningful metrics to track critical success factors. These include efficacy-based metrics centered around key indicators such as quote turnaround time and how well your pricing optimizes your margin and your success at winning business. Finding your pricing sweet spot is possible and should be implemented. These analytics tell you how efficient and effective your quoting process is and direct you to any areas for improvement.

Speed + Price = SUCCESS

Speedy quotes with optimized pricing are critical in today’s high tech market. It gives you a competitive edge, increasing the chances of the customer choosing you over your competitors. And that’s an investment worth making.