Price Proofing Quotes

[SRE]

As we have to honour quotes for 30 days and prices seem to be going up steadily - has anyone any ideas about how to keep the price keen, stay within REAL and cover your backside if/when prices increases???

 

[sedgy34]

Your price is your price don't change that concept

 

[SRE]

Yea but if you're materials increase within the 30 day period - and it's happening at the minute, then how can you honour a deal without losing money. That's my point

 

[sedgy34]

Yea but if you're materials increase within the 30 day period - and it's happening at the minute, then how can you honour a deal without losing money. That's my point

Maybe pop a line on your quote "quote lasts for 28 days"

 

[finchy]

30 days so long as unit material cost remain.

Or * - and in the contract explain * we will do our upmost to honour the 30 day fixed price however if material prices change we reserve the right to update the quoted price ......... or something of that ilk !

 

[SRE]

Good idea Finchy but I wonder what REAL's take on that will be. I may give them a call on Monday to find out.

 

[sedgy34]

Good idea Finchy but I wonder what REAL's take on that will be. I may give them a call on Monday to find out.

do you actually think they will be bothered

 

[SRE]

With my luck I'll be the one that they pick up on! I wonder if a customer got picky if I hadn't added the caveat in about material price changes if they would go to Trading Standards because I wouldn't honour a quote.

 

[finchy]

I'm sure it's standard practice. After all it's a business not a charity ! Have a look in the newspapers at other big companies selling stuff(cars etc)**** are the get out of jail clause !

 

[Gavin A]

Good idea Finchy but I wonder what REAL's take on that will be. I may give them a call on Monday to find out.

why?

what business is it of theirs?

IMO as long as you don't up the price after a contract is signed, and any price rises for quotes issued are justified and you give people a warning of this then there should be no issue, certainly not enough of an issue for anyone to complain to REAL.

We emailed everyone we'd quoted for last week giving them until monday to pay a deposit if they wanted to guarantee the installation at the price quoted, after which we'll be requoting - the key I think is to explain the reason and link to an impartial article in the press about it.

In terms of price proofing though - talk to your suppliers, and don't put all your eggs into one basket. Id definitely recommend Romag for this, we've got guaranteed prices into the end of April, though I just found out they are putting prices up slightly due to exchange rate changes and pricing pressures for the cells, it's not going to be anything like manufacturers who're importing the entire panels.

 

[SRE]

For some reason I'd got it into my head that we were bound to a 30 day quote, but I can't find anything to say that we're bound to the quote, so I'll do as Finchy suggests and build the material costs bit into our quote. Probably should have done it earlier.

As for emailing our customers - we did that 2 weeks ago, it didn't take long! Unfortunately as pleasantly as we put it I think we looked like the shiny suit brigade. I don't know what everyone else is finding but most customers we're going to now are having 5 or 6 quotes. If we get there first they've forgotten what we've said by the last one and if we get there last (as we did yesterday) they've been told so much rubbish they don't know what to believe. I think the press article will help but it seems as if the first glimmer of hope for months of the solar business getting back on its feet are well and truly scuppered.

 

[Worcester]

It's the contract that binds you not the quote.

Wen't through all that in detail with REAL when they did our Audit last year and went thorugh every single one of our historic (12months old...) domestic contracts and they said that we hadn't covered our risks enough!!!!

Went from 4 paragraphs on our contract that said we'd so it for the price contracted whatever happened to a 5 pages of REAL model monstrosity.....

 

[finchy]

They did try to impose that on us but I merged with ours into 2 pages small font(10). Which was pulled up on our audit I emailed real and I said I will print in large font it necessary plus we send electronic via PDF and customers can enlarge it to the size the require.