By now, you have validated the RFQs, politely declined the wrong RFQs, and you’re ready to quote to win.
We have talked about not wanting to spend our time on doing anonymous quotes, where the customer just wants to compare prices from different suppliers – no real value added.
Does this mean that price will not matter at all?

Well, not quite! Price does make a difference – to a degree. The customer has to feel that they get value for money, or they won’t give us their business. The more value the customer can see that we add, the higher our price can be. But, we have to show them the value. This is where your professional touch comes in, as a Needs Analyst.

Call the factory
Sometimes it makes sense to contact the factory before writing a quote. These are three examples when I would call the factory:
• When area is over 20 m2, to negotiate prices et c.
• If it’s a technically complex PCB, DFM review, lead time, prices et c
• And certainly, if it’s a large order (over $2 000) to negotiate a price. If you call a factory and tell them you can place an order if they meet a certain rebate – let’s say 4,6% – they will be more likely will accept. A tip! Never ask for a rebate that is an even number, like a fixed 5% or 10% et c. Always ask for something like 5,2 or 10,6 – something that is a bit odd.

Lowering our costs is great, as long as we don’t pass all the gains on to the customer! Lower costs should always lead to higher margin.