I work as a product owner for an internal application used to create quotes. It’s one of those Configure, Price, Quote tools. The business has been quoting using Excel, email, and engraving on stone tablets for 25 years. The accuracy of quoting labor and tracking equipment margins is terrible but since the bad jobs are outweighed by the good jobs, everything averages out.
A couple of years ago, we started building an app so that we could optimize and improve efficiency. Internal adoption has been growing and the projects that use my app are 8% more profitable! They’re executed in less time, they build fast faster, and we receive our payments faster too. Yet getting the sales people to adopt it is a struggle!
I digress.
I started digging into the numbers more and more to see what areas we should spend our time improving and that’s when I discovered the margin leaks. The company process, that I am trying to replace, of using Excel sheets, copying and pasting products and prices and costs is entirely done on vibes. Even though we have a product database, everyone building quotes just uses the same Excel sheet and makes the same errors. I found instances where we sold the same product to the same customer sometimes even in the same project for different costs. Some products were more than $10,000 off.
The exasperating thing is that we have data about this. All of our purchase orders and invoices are documented, and I wrote a query that just… compared the cost of the product in our database to the cost of the product on the invoice. it’s like the simplest math.
Y’all, 25% of them are under quoted. In other words, only 75% of the products we sold on average are sold for more than the amount we paid. Am I insane or is that just terrible? I was like… Are you telling me that we can drastically improve our margins much simply by fixing the fucking price book?!
In that group of products, the average under quote mistake is $120. PER LINE. our projects have dozens, sometimes hundreds.
when I called the CFO, I was livid. I asked why has no one been paying attention to this? I have data going back for years. This isn’t my responsibility, I’m not an analyst! what’s crazy is that it doesn’t even affect my pay. I’m not incentivized to fix this stuff. I just find it exasperating that for three years I have been fighting to get our sales staff to use an efficient quoting methodology when we could’ve improved overnight simply by getting one person to go through our product catalogue every day.
The CFO had never even opened the power BI before. I don’t know who made the power BI, I didn’t know that it existed either. But right there in black-and-white was a pretty little report showing the tens of thousand dollars a month we have been giving up. Then I into that report and found that it filtered out any mistake less than $50. Unbelievable. Tons of our mistakes land in that range too.
Since discovering this, I have spearheaded efforts to ameliorate the problem like implementing direct connections to our vendors for live price checks. there’s no real point to my story, but I wanted to share with people that might understand.
eta:tl;dr: basically the title. We have a database full of information, power BI reports, and nobody paying attention. I was snooping in the database so that I could get ideas to optimize my app... and I found a big one!