The order that arrived after the price rise
A customer accepted a quote from seven weeks ago for a batch of galvanised enclosures. Since then the steel stockholder has put up the price of galvanised sheet twice. The quote said valid for thirty days, but nobody checked, and the order was entered and scheduled at the old price.
The job will be made at a loss on material, and the customer will be surprised if you ask for more now.
Why steel price changes catch fabricators out
Sheet prices move with the market, sometimes several times in a few months. Quotes are priced with whatever figure the estimator had in their spreadsheet that week. There is no record of which price each quote used, so when prices change, nobody can tell which open quotes are now wrong.
- Material prices are in a spreadsheet updated when someone remembers.
- Quotes do not record the sheet price they were based on.
- Validity dates are printed on the quote but not checked when orders arrive.
- Stockholder price notices arrive by email and are not acted on.
- Long running framework prices are not reviewed.
What it costs
Margin lost on jobs where material is a large part of the price, which in sheet metal it often is. Uncomfortable conversations when you try to re-price an order already accepted. And the opposite risk: quoting too high because the estimator added a nervous margin, and losing work you could have won.
The price aware quoting we build
- A price table holds your current sheet prices by material, grade, thickness and sheet size, per stockholder, with the date each was last confirmed.
- Stockholder price lists and notices can be read from email, with the changes shown for someone to confirm before the table updates.
- Every quote stores the material prices it used, and its validity date.
- When prices change, a report lists open quotes whose material cost is now materially different, with the new figure, so you can decide to requote, contact the customer or leave it.
- When a purchase order arrives, it is matched to its quote. If the quote has expired, or material has moved beyond a threshold you set, it is flagged before the order is accepted.
- Framework or annual prices for regular customers are listed with the material price they assumed, for review when prices move.
| Event | What the tool does |
|---|---|
| Stockholder price change | Updates the table after confirmation |
| New quote | Records the prices used and validity date |
| Prices move | Lists open quotes that are exposed |
| Order arrives | Checks validity and price movement |
| Framework review due | Shows the material assumption behind it |
What you do when an order arrives on an old quote is a commercial decision. The tool makes sure you are making it knowingly.
After it is in place
Estimators quote from prices that are current, with a date on them. When prices rise, you see the quotes at risk the same day and can talk to customers before they place orders, which is an easier conversation than after. Orders on expired quotes are caught at order entry. Over time, you can see how often material moves affected your margins and adjust your validity periods accordingly.
It also helps when a customer pushes back. If you do need to requote, you can show them the sheet price the original quote used and the price today, from your stockholder's own notices, which makes the conversation about the market rather than about you.
Is this happening to your margins?
- Orders arrive on quotes that are weeks old.
- Nobody checks validity dates when orders are entered.
- The material price spreadsheet is updated occasionally.
- You cannot say which sheet price a given quote used.
- Price rises from stockholders are not reflected in open quotes.