Pricing on the Basis of Past Work. A common technique for estimating in the printing industy, especially for a mix of products produced in the same plant, is pricing on the basis of past work. Essentially, the estimator and sales representative establish and maintain a file of past jobs that have been profitably produced and for which production is geared. The salesperson uses this sample portfolio during the sales contact with the customer. Frequently, the client will seect a produc from the sample, with a request for a color change or perhaps a slightly different page size. Back at the plant, the estimator will pull the original estimate for this job, review it, and make necessary changes to reflect the modifications desired by the customer. The sales representative will then retrun to the customer with a proposal stating exact prices for various quantity levels. If changes are limited, the procedure is fast and reasonably accurate. The technique leads toward product specialization that may be most prof table for the company in the long term.
In some cases, the procedure is modified somewhat: The estimator maintains a card file system of past job quotations. The sales representative then sells work without a sample portfolio and brings the work in to be estimated. At this point, the estimator refers to the card file for a similar job done perhaps three months ago and quotes that former price or one close to it. The filling system used must be indexed and cross-referenced to be a timesaver for the estimator.
