Our customers’ Request for Quotations (RFQs) reliance on us is happening almost on a daily basis. Our diligent Japanese customers continue to reach out via email for quotes, even on weekend. Notably, during the Spring Festival holiday, we remained engaged with our customers, as Japan’s business operations continued without interruption. This ongoing communication is essential for our customers to obtain our pricing, enabling them to conduct their business activities seamlessly.
Some individuals perceive us as diligent workers, while others view our clientele as “ruthless.” Nevertheless, we have completely adjusted to these expectations. A few years back, when I was solely taking up the sales & marketing role, I would provide quotes to customers with my engineers supporting me via online while simultaneously enjoying the New Year’s Eve gala. This is simply the nature of our customer base; we must adapt and fulfill their expectations. It is not feasible to allow our customers to take a break, nor can we dismiss all inquiries, as they genuinely require our support. Additionally, this is not a monopolistic industry; if we do not engage with our customers, they will seek alternatives. This is the cruel reality of this competition.
The majority of our clientele consists of end customers, with a smaller portion being trading companies. However, it is important not to underestimate the significance of these trading companies. Their order volumes can match, and in certain months, even surpass those of end customers. Furthermore, the fact that a customer is a trading company does not lead us to reduce our profit margins in order to secure an order. We maintain an equitable approach to all customers. This indicates that the capabilities of these trading companies are quite robust.
A notable characteristic of trading companies is their high volume of RFQs and their expectation for rapid response time. Given the presence of multiple customers within the trading company, the total number of inquiries from each customer will exceed that of a single end customer, compounded by the intense competition they face. These customers place significant emphasis on the promptness of quotations. If our company receives a call requesting urgent quotations, it is likely from one of these customers. Consequently, our team experiences heightened pressure when addressing inquiries from such customers.
Based on the standard process flow, upon the finalizing of the calculation by our engineering, our sales team will then formulate the official quotation and send it to our customer. Assuming there are 200 RFQs, our engineering will need 3 to 4 hours to finalize the calculation (depending on the complexity of the product, and the type of changes to be accommodated). The sales team will then need another 2~3 hours to prepare the official quotation due to the immense details required such as product number, material type, surface treatment, quantity, etc. As much as the sales team can simultaneously prepare the template of the quotation while the engineering team is working on the RFQs, we are still looking at a 5 hours timeframe which can get customers very nervous in extremely urgent cases.
After extensive deliberation, I decided to propose to a customer that we shall forgo the formal quotation template and instead annotate the price directly on the drawings, with the details of the proposal also articulated within the drawings or communicated via email, thereby enhancing the efficiency of the quotation process.
Our objective is to help our customers save time at their end, and to win orders as well. As their knowledge in precision machining is comparatively limited and at times, they even struggle to understand the product drawings. Therefore, in our pricing proposals, we included technical suggestions to be presented to their customers which will differentiate themselves from their competitors. There is no tangible value in an official quotation. For instance, if an order cannot be secured, the time spent in preparing the official quotation is wasted. For us, if the quoted price is written on the drawing, it does not affect our customer (trading house) as they are the ones facing the end customer, they will need to present a formal quote to their end customer. In such instances, it would be more beneficial for the trading company to handle this aspect. We should avoid duplicating this low-value task and instead concentrate on generating profits for our clients.
This customer was very forthcoming and immediately agreed to my proposal, and informed that he would explain my proposal to his colleagues in the company. With such an adjustment to our quoting process, our quote efficiency doubled. While providing more value-add for customers, it effectively reduces our internal costs.
In our routine tasks, it is common to overlook repetitive elements and presume they are fixed. Despite occasional feelings of irrationality, there remains a concern that customers may resist change, leading to inaction. Furthermore, a critical aspect to consider is that during the presentation of proposals to customers, the actual requirements of the customer is not fully comprehended. On the contrary, it is also possible to overthink matters and become hesitant. In reality, by genuinely understanding customer needs and articulating the advantages of proposed changes, discerning customers are likely to endorse your initiatives.
Musk Lyu
09.12.2024
