Customers that send out a lot of quotes, "cast netting"
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    Default Customers that send out a lot of quotes, "cast netting"

    I have heard this from several shops... customers that routinely send out a list of parts to many shops for quotes. Five or more is not unusual. Then they pick the lowest prices from the quotes so most shops get a few of the parts.

    When did this become normal? Kind of irritating because it makes for a lot of quoting with only getting a small percentage of the parts quoted.

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    Idk, be more competitive and get all the parts?

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    You have to either state it's a "lot quote", or comment that each item cost is dependent on all being awarded, with a separate price for line only.

    Not that it'll stop people from picking, and you may not get any. Welcome to our modern world, where if you're not at the top, you ain't chicken poop.

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    Quote Originally Posted by laminar-flow View Post
    I have heard this from several shops... customers that routinely send out a list of parts to many shops for quotes. Five or more is not unusual. Then they pick the lowest prices from the quotes so most shops get a few of the parts.

    When did this become normal? Kind of irritating because it makes for a lot of quoting with only getting a small percentage of the parts quoted.
    Somewhere around 1970.
    Bob

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    When you go to buy something say a car do you just buy the 1st thing you see. No you shop around and get the best deal for the best car, and for your budget. Same thing with a Company needing parts they have a budget and most the time its up to them to put together a BOM and get quotes so spread it around to save some money. I don't just buy raw materials from say McMaster-Carr I send out quotes to my local suppliers and get the best price.

    This keeps shop competitive and prices change you cant have the same prices for 15 years yet along 6 months. To many variables so get use to quoting jobs its a part of this trade for sure.

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    Quote Originally Posted by laminar-flow View Post
    I have heard this from several shops... customers that routinely send out a list of parts to many shops for quotes. Five or more is not unusual. Then they pick the lowest prices from the quotes so most shops get a few of the parts.

    When did this become normal? Kind of irritating because it makes for a lot of quoting with only getting a small percentage of the parts quoted.
    Umm.. always? That is why there are so many posts here about best way to quote/how to quote/building a system or model to quote. If you are quoting each item and spending too much time you will never make much IMO. I used to quote when the owner was on vacation and it was a matter (for this particular customer anyways) of looking at the last job we did for them with similar items and 'fudging" those numbers and quickly getting a number back to them.

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    Are you new at manufacturing 101?

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    The same guys that do this also pay in 6-9 months. I just refuse to quote. If you dont award me a job after I have quoted 3-4 times then obviously we are not a good fit for each other so why waste time

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    If you need a ton of Steel and a ton of Brass, put out RFQ for both and

    Company A is high on the Steel price, but low on the Brass
    Company B is high on the Brass price, but low on the Steel

    Do you order both from company A or Company B???

    Maybe just order the Brass at the lower cost from A and the Steel at a lower cost from B.


    For me...if both in the ballpark I look at delivery and who I normally buy from with the best support.

    But at times it can be several hundred less from each by splitting the order...that is money best left in our coffers.


    Some nit pick pennies on sizes or...
    Sometimes I tell my preferred vendor exactly what I am being quoted from others...telling them if they can get close I'd prefer to give them the business. Sometimes they can sharpen their pencil and get me close...sometimes they cannot touch the item they are high on for whatever reason...but can play with the remaining items...sometimes they just say...thats a good price, buy it.


    I will say that when I quote similar items I will offer grouping discounts.

    Cut and key 1" parts at $1.00 each in lots of 10pcs
    Cut and key 2" parts at $1.00 each in lots of 10pcs

    Cut and key 1"& 2" parts at $.75 each in lots of 20pcs

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    Fitting description. This becomes more common the less good relationship exists. Or it can be just squeezing more profit out based on lower cost per part. Quality and skill of a vendor is important to the process so that if price is the major concern then when one gets the lowest price often they get the quality and service they pay for. It is hit and miss.

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    Quote Originally Posted by SIM View Post
    If you need a ton of Steel and a ton of Brass, put out RFQ for both and

    Company A is high on the Steel price, but low on the Brass
    Company B is high on the Brass price, but low on the Steel

    Do you order both from company A or Company B???

    Maybe just order the Brass at the lower cost from A and the Steel at a lower cost from B.


    For me...if both in the ballpark I look at delivery and who I normally buy from with the best support.

    But at times it can be several hundred less from each by splitting the order...that is money best left in our coffers.


    Some nit pick pennies on sizes or...
    Sometimes I tell my preferred vendor exactly what I am being quoted from others...telling them if they can get close I'd prefer to give them the business. Sometimes they can sharpen their pencil and get me close...sometimes they cannot touch the item they are high on for whatever reason...but can play with the remaining items...sometimes they just say...thats a good price, buy it.


    I will say that when I quote similar items I will offer grouping discounts.

    Cut and key 1" parts at $1.00 each in lots of 10pcs
    Cut and key 2" parts at $1.00 each in lots of 10pcs

    Cut and key 1"& 2" parts at $.75 each in lots of 20pcs
    Man I hate that expression! I think it is because we had one customer that said that for every single quote we submitted. I am pretty sure after a couple times we just played their game and increased the quote by 5% or whatever then "sharpened our pencil" and knocked 4% off! haha

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    No, I do not have a lot of experience quoting job shop type of work. Most of my work are complete instruments or assemblies or prototyping. Mainly from good customers, some who don't even need a quote.

    But occasionally I do get a job shop type of quote and feel like I am just another email on the "bcc".

    Friends with shops report the same feeling. Before email this might have been less as they would have to drive to each shop with paper drawings.

    When buying I can shop around by looking at prices and don't have to bother most vendors.

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    For many, a job shop is a commodity service. You are just another Bcc on the email. The only way to break from this is to compete on something other than cost. Maybe you can do it in half the lead time, maybe you can handle trickier, tighter tolerance parts and guarantee reliably higher quality with detailed inspection reports. Trying to get that job for easy, simple parts that anyone can do is a race to the bottom. Gotta have a niche.

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    Sometimes I tell my preferred vendor exactly what I am being quoted from others...telling them if they can get close I'd prefer to give them the business.
    And this is morally and ethically OK with you?

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    Sometimes no bidding the job is in order. It might need a higher price as no one wants to do it. Then surprise you get the job.

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    In a manufacturing environment, it was all quoted by two shops unless it was a 911 job. When one shop did all the work for six months straight, it started to get difficult to get other shops to quote.

    In an environment where financed funds were being used, the quote was a requirement...and bidding jobs was routine.

    I would routinely send out quotes on parts that were subassemblies that were out of the ordinary.

    But any more for me, I want three or four jobs quoted by a new vendor...then I want them to review the print to say “looks routine” just so I don’t get sticker shock when I get the invoice. But I’m spending my own money.






    Sent from my iPhone using Tapatalk

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    I knew a big company used to invite detailed pricing and complex tenders taking many hours to prepare,and after tenders closed,would show the tenders to a third party with a request for a cheaper price....and they used to hit desperates for a fidelity cash deposit with each lodgement....... it would take months to get the deposit back,supposedly from a trust account.

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    Save yourself $100,

    NO QUOTE

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    "Sometimes I tell my preferred vendor exactly what I am being quoted from others...telling them if they can get close I'd prefer to give them the business."

    Quote Originally Posted by g-coder05 View Post
    And this is morally and ethically OK with you?
    That didn't surprise me, it shocked me. If it isn't against the law it should be.

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    Quote Originally Posted by g-coder05 View Post
    And this is morally and ethically OK with you?
    Why wouldn't it be? Taking retail into account, it's very common for them to "price match" so why can't a machine shop? For example, you *need* the work but the buyer says "sorry xx shop is getting them for xx dollars and it is basically the same as your price (you marked up mats more, etc) and you feel like you could do it for that price, why not?

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