|
Custom Cabinet Estimating Software Designed by Cabinetmakers for Cabinetmakers |
Business Partner Estimating Software is designed to address the primary constraint
within most cabinet manufacturing companies, which we
have invariably found to be the owner of the company. As cabinet manufacturers, we
simply wear too many hats, and typically wear the estimating hat sideways, or
at times back-wards. We are so busy doing urgent things, that we simply do not
have time to do the important things, like identifying our costs, and creating
a systematic estimating method that accounts for those costs. We spend too much time working in our businesses, and not nearly enough time working on our businesses.
"Spend less time working in your business so you can spend more time working on your business."
Business Partner elevates and many times breaks the owner as the primary constraint by allowing him or her to estimate more jobs (if you estimate more jobs, you will inevitably get more jobs) in the same amount of time, or estimate the same number of jobs in much less time. It also allowed the owner to delegate estimating to sales staff, or even secretarial staff if needed, by providing an accurate and yet easy to use and understand method for producing estimates. This was our primary objective (speed without compromising accuracy), but we found many additional benefits that were a by-product of the simple estimating process afforded by the Business Partner.
First, we were closing a higher percentage of the estimates based on what seemed to be intangibles. One being the accurate reports, which are simply a by-product of the estimating process seemed to put a clients concerns about your estimating methods at ease. Many clients assume that your estimating methods are more of an art than a science (many of our estimating methods prove them right), and they also assume that this leads to fluctuations in your estimates based on your temperament at the time of the estimate. They have to wonder if this is a good day or bad day in the fine art of estimating, and thus feel compelled to get additional estimates to test their fears. We found that by using the Business Partner, clients felt secure in the methods we were using to determine their estimate, and were less likely to get additional estimates. I personally have had more clients sign contracts at our first official meeting to present our proposal than ever before.
"Build trust with your clients. Sell more jobs. Make more money."
Second, we found that the ability to let the client play out multiple "what if" scenarios was by far the most powerful weapon in our new arsenal. If they had requested an estimate for oak cabinetry, and simply wanted to know how much it would cost to use cherry instead, we could give them that answer with confidence in less than a minute. If they wanted to know how much more it would cost to add a glazed finish, we could give them that answer in less than a minute as well, and know that we were still maintaining our margins. The same holds true of door styles, drawer front styles, end types, accessories and the list goes on and on. We can let the client be diligent in terms of getting the most cabinet for the dollars they want to spend, without making them feel that they are inconveniencing us. This holds real power in attracting clients, and even more in getting them to sign on the dotted line.
Another powerful, but less glamorous by-product is the ability to adjust your raw material costs. In your current estimating method, how do you adjust for a simple change in a material cost? Example: If your cost for 3/4" melamine were to change from $.68 a square foot to $.72 a square foot, how would you adjust your current estimating method for this? In Business Partner, you would simply go to your material catalog and change the material cost, and it would accurately account for it from that point on. If you have this ability now, it is probably because you are using your design software to estimate with, which certainly adds accuracy to your estimates, but also requires you to design the entire job to get an estimate. We think that is back-wards, although I did it that way from 1990 till the Business Partner program was completed in 1999. I loved the accuracy, but hated the fact that many times I was burning valuable daylight with little or in most cases no compensation. With the Business Partner, you estimate jobs first, and only design jobs that you have been awarded, and yet we still deliver the kind of accurate details that allow a customer to award you the project without first designing it. If you currently charge for your designs, and prefer to continue doing this, Business Partner just polishes your presentation by producing professional supporting documents to accompany your design drawings.
"Stop burning daylight and get a copy of the Business Partner Estimating Software."
Our past experience has revealed that most cabinet manufacturers bid in one of three ways. The first and most prevalent is per lineal foot. While this method is extremely fast, accuracy is certainly sacrificed to averages. The analogy I like to use for this method of pricing is the imaginary client comes and asks for an estimate on one ten-foot cabinet. If you produce face frame cabinets you might politely tell her that you will produce that as one cabinet with three drawers over three pairs of doors, if you produce frameless, you might tell her that you will produce three cabinets that have a drawer over a pair of doors. You would then inform her that you charge $200.00 per lineal foot for this cabinet type (by the way, how do you determine the difference in oak and cherry in this scenario?), and that the cabinetry will cost her $2000.00. She thanks you for the estimate, and if you provided drawings, she takes them to at least two other shops for them to estimate. If she determines that you are indeed the lowest bidder, she talks it over with her husband, who thinks he is an expert in everything he encounters, who then recommends that she have you build ten one foot cabinets instead of one ten foot cabinet. So the next day, Mrs. Client shows up at your place of business ready to do business. You now need to provide ten drawers instead of three, ten doors instead of six, and ten cabinets instead of one or three. This is so obvious that you certainly would have to point this out to her, and may even get her to pay a little more for this change, but the problem is, this happens every day, and it is so subtle, that you don't even notice it.
The second method is to estimate per square foot, which at least accommodates for all height considerations, but that is the only advantage. All the other problems associated with lineal footage pricing apply to square foot pricing. Last, but certainly not least is the design software method. While this method is not nearly as prevalent as the other two, it is gaining in popularity. Most cabinetmakers that choose this method are looking for accuracy, but unfortunately, it is at the expense of speed and simplicity. You no longer can have employees assist with estimating without months of training, and every job must be designed before it can be estimated. If you get the job, you are way ahead of the game since your designs are already completed. But, if you do not get the job, you are standing in the shadow of burnt daylight, with little or nothing to show for your effort. And a very real by-product of this time consuming method for me was to inadvertently be reluctant to estimate jobs, which in a booming market can work for a while, but in an contracting market will come back to haunt you. I cannot tell you how many jobs I have lost due to the long delays from the time I had a set of blue prints in my hand till the time the client actually had an estimate in theirs. In our current society, speed is paramount. Business Partner can deliver both speed and accuracy, nothing is compromised.
"One thing really can change everything."
By letting you estimate by cabinet, elevation, room or project, you can provide the level of detail your clients need. Business Partner deals with the constraint, which delivers far more advantages than meet the eye. Business Partner provides the ability to find, keep and grow the right kind of customers?, which is a coveted, but seldom realized desire of each and every cabinetmaker I know.
-Bob Buckley
"Spend less time working in your business so you can spend more time working on your business."
Business Partner elevates and many times breaks the owner as the primary constraint by allowing him or her to estimate more jobs (if you estimate more jobs, you will inevitably get more jobs) in the same amount of time, or estimate the same number of jobs in much less time. It also allowed the owner to delegate estimating to sales staff, or even secretarial staff if needed, by providing an accurate and yet easy to use and understand method for producing estimates. This was our primary objective (speed without compromising accuracy), but we found many additional benefits that were a by-product of the simple estimating process afforded by the Business Partner.
First, we were closing a higher percentage of the estimates based on what seemed to be intangibles. One being the accurate reports, which are simply a by-product of the estimating process seemed to put a clients concerns about your estimating methods at ease. Many clients assume that your estimating methods are more of an art than a science (many of our estimating methods prove them right), and they also assume that this leads to fluctuations in your estimates based on your temperament at the time of the estimate. They have to wonder if this is a good day or bad day in the fine art of estimating, and thus feel compelled to get additional estimates to test their fears. We found that by using the Business Partner, clients felt secure in the methods we were using to determine their estimate, and were less likely to get additional estimates. I personally have had more clients sign contracts at our first official meeting to present our proposal than ever before.
"Build trust with your clients. Sell more jobs. Make more money."
Second, we found that the ability to let the client play out multiple "what if" scenarios was by far the most powerful weapon in our new arsenal. If they had requested an estimate for oak cabinetry, and simply wanted to know how much it would cost to use cherry instead, we could give them that answer with confidence in less than a minute. If they wanted to know how much more it would cost to add a glazed finish, we could give them that answer in less than a minute as well, and know that we were still maintaining our margins. The same holds true of door styles, drawer front styles, end types, accessories and the list goes on and on. We can let the client be diligent in terms of getting the most cabinet for the dollars they want to spend, without making them feel that they are inconveniencing us. This holds real power in attracting clients, and even more in getting them to sign on the dotted line.
Another powerful, but less glamorous by-product is the ability to adjust your raw material costs. In your current estimating method, how do you adjust for a simple change in a material cost? Example: If your cost for 3/4" melamine were to change from $.68 a square foot to $.72 a square foot, how would you adjust your current estimating method for this? In Business Partner, you would simply go to your material catalog and change the material cost, and it would accurately account for it from that point on. If you have this ability now, it is probably because you are using your design software to estimate with, which certainly adds accuracy to your estimates, but also requires you to design the entire job to get an estimate. We think that is back-wards, although I did it that way from 1990 till the Business Partner program was completed in 1999. I loved the accuracy, but hated the fact that many times I was burning valuable daylight with little or in most cases no compensation. With the Business Partner, you estimate jobs first, and only design jobs that you have been awarded, and yet we still deliver the kind of accurate details that allow a customer to award you the project without first designing it. If you currently charge for your designs, and prefer to continue doing this, Business Partner just polishes your presentation by producing professional supporting documents to accompany your design drawings.
"Stop burning daylight and get a copy of the Business Partner Estimating Software."
Our past experience has revealed that most cabinet manufacturers bid in one of three ways. The first and most prevalent is per lineal foot. While this method is extremely fast, accuracy is certainly sacrificed to averages. The analogy I like to use for this method of pricing is the imaginary client comes and asks for an estimate on one ten-foot cabinet. If you produce face frame cabinets you might politely tell her that you will produce that as one cabinet with three drawers over three pairs of doors, if you produce frameless, you might tell her that you will produce three cabinets that have a drawer over a pair of doors. You would then inform her that you charge $200.00 per lineal foot for this cabinet type (by the way, how do you determine the difference in oak and cherry in this scenario?), and that the cabinetry will cost her $2000.00. She thanks you for the estimate, and if you provided drawings, she takes them to at least two other shops for them to estimate. If she determines that you are indeed the lowest bidder, she talks it over with her husband, who thinks he is an expert in everything he encounters, who then recommends that she have you build ten one foot cabinets instead of one ten foot cabinet. So the next day, Mrs. Client shows up at your place of business ready to do business. You now need to provide ten drawers instead of three, ten doors instead of six, and ten cabinets instead of one or three. This is so obvious that you certainly would have to point this out to her, and may even get her to pay a little more for this change, but the problem is, this happens every day, and it is so subtle, that you don't even notice it.
The second method is to estimate per square foot, which at least accommodates for all height considerations, but that is the only advantage. All the other problems associated with lineal footage pricing apply to square foot pricing. Last, but certainly not least is the design software method. While this method is not nearly as prevalent as the other two, it is gaining in popularity. Most cabinetmakers that choose this method are looking for accuracy, but unfortunately, it is at the expense of speed and simplicity. You no longer can have employees assist with estimating without months of training, and every job must be designed before it can be estimated. If you get the job, you are way ahead of the game since your designs are already completed. But, if you do not get the job, you are standing in the shadow of burnt daylight, with little or nothing to show for your effort. And a very real by-product of this time consuming method for me was to inadvertently be reluctant to estimate jobs, which in a booming market can work for a while, but in an contracting market will come back to haunt you. I cannot tell you how many jobs I have lost due to the long delays from the time I had a set of blue prints in my hand till the time the client actually had an estimate in theirs. In our current society, speed is paramount. Business Partner can deliver both speed and accuracy, nothing is compromised.
"One thing really can change everything."
By letting you estimate by cabinet, elevation, room or project, you can provide the level of detail your clients need. Business Partner deals with the constraint, which delivers far more advantages than meet the eye. Business Partner provides the ability to find, keep and grow the right kind of customers?, which is a coveted, but seldom realized desire of each and every cabinetmaker I know.
-Bob Buckley
