Lesson 3: Quote to Win

3.2 Answers from Marissa

In this video, Marissa (Carolina Hållenius, NCAB Sweden) will answers the questions Michael asked in “2.3 Picking up the phone“.

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This is how Marissa have answered my questions:

Tell me more about the project itself?
It’s a volume project for us. We have done industrialization on an earlier revision and now we quote to build 24 000 each year, but we need to build the 250pc sample run first in 4 weeks after order, so I would need those PCBs here in 3 weeks.

When would you need the first monthly volume?
The sample run will be scrutinized for about a week, and if OK they will release first volume order for production directly, expecting us to deliver in 6-8 weeks after that.

What can you tell me about your end customer?
The end customer is Huge ODM Company Inc. They do fail-safe remote controls for hydraulic cranes mounted on trucks. It’s a new customer for us, and we are competing against two other EMS. They are very picky both on quality and price, so we need the boards at the lowest price possible to win. They are also conscious about sustainability, as it is a vital part of their customers’ demands as it is for us.

What kind of liability in time or volume are you discussing with the customer?
After the initial sample run, we plan for 2 000pc per month and aim to get liability for 3 months’ material needs.

Would you commit to the full yearly volume based on that we respect the 3 month liability?
Yes! If you keep maximum 3 months in stock and ship me 2000pc each month.

When do you need the quote?
Our quote should be submitted in 5 days, so I need your quote in 2-3 days.

Besides “price”, what can I do to help you win this project?
Tough question, but we have looked at your sustainability report and I think anything that makes us look good in that department would help.

Thanks Marissa, I will have the quote with you in 2 days. I’d like to run it thru with you, when would be a good time for me to contact you?
Afternoon in 2 days.

Aha! So now we know some interesting things:
• If they win the order, we will have orders for the rest of the year.
• Our negotiation point on our “cost” is vastly different from what she wrote.
• The end customer is mindful on quality and sustainability– perfect for us to show that we are professionals on that!