In the base post of this series as well as a related post, we talked about many different aspects of a sales quotation and even put forth a sample quotation. In this post, we’re going to talk about what leadtimes you should put on your quote.
A quoted leadtime can mean different things to different parties. Oftentimes, on a quote a salesman will put a leadtime that refers to when the product will ship. The customer, however, will often view leadtime as when they can expect your widget delivered on their dock. So be careful to make this distinction clear.
Another typical item to carefully spell out is that your quoted leadtime is after you receive their order (ARO). So if you quote “3 weeks ARO”, it means that the leadtime is three weeks after they send in their order.
If your product is highly dependant on receiving raw materials, you might want to quote the that the leadtime also is after receipt of materials (ARM).
Finally, if your dealing with an unknown customers and you need paid up front, your leadtime needs to reflect that you won’t ship until after receipt of payment (ARP).
So a complex example would be:
Shipment: 4 weeks ARP, ARM (note that raw materials won’t be ordered until payment is received)
In the above example, you are saying that after you get paid, you will order raw material and ship your product out in 4 weeks from that day.
Please CLICK HERE to download a sample sales quotation to use as a template in your sales efforts.