Profit Starts with the Quote: Estimating Smarter for a Stronger Shop, 468

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Are you losing money before the job even hits the floor?

If your quotes are based on outdated spreadsheets, rough guesses, or a “that’s what we’ve always charged” mindset, you might be setting your shop up to fail—before the first chip falls. In this episode of the Machine Shop MBA series, we tackle one of the most common (and costly) problems in manufacturing: bad quoting.

Mike shares lessons from five shop acquisitions—each one quoting the wrong way. Paul lays out a clear framework for cost modeling, from flat-rate estimating to activity-based precision. And Nick brings it all home with real-world strategies for walking away from unprofitable jobs and quoting with confidence.

You’ll learn how to:

• Break down your true cost per hour (and why most shops get it wrong)
• Quote faster and win better work
• Tie quoting to sales strategy and customer fit
• Eliminate jobs that quietly kill your margin

Because quoting isn’t just a math problem. It’s a leadership decision—and the future of your shop depends on getting it right.

Segments

• (0:00) Friday energy, name mispronunciations, and intro banter
• (1:01) Why ProShop can help you achieve on-time delivery
• (2:34) Common quoting mistakes usually stem from broken models
• (6:25) Scarcity mindset vs. abundance mindset in quoting decisions
• (7:45) The four cost buckets you need to understand
• (9:22) Estimating 101, 201, and 301: building smarter quoting systems
• (12:58) How automation changes the math (or does it…?)
• (16:20) Value-based pricing: how some shops quote with confidence and win
• (18:00) Customer transparency: when it helps, and when it hurts
• (19:50) Sales pressure and quoting leverage: why quoting ties back to marketing
• (21:05) Calculating machine rates: depreciation, utilization, and more
• (24:30) Overhead, tooling, scrap—when to include it, and how
• (25:22) Stay tuned for Top Shops 2025 registration! 
• (27:45) Quoting efficiency: Don’t win everything—win smart
• (30:42) Win rates: Why 100% is a red flag, and 40% might be just right
• (34:20) Speed-to-quote: The biggest untapped quoting advantage
• (37:43) Don’t forget to charge for review, prep, and inspection
• (39:32) Kill the losers: How to identify and eliminate unprofitable jobs
• (44:38) Use quoting as a filter for new customer relationships
• (46:15) Knowing your limits and stretching your niche
• (51:17) Recap and preview: How quoting connects to sales, strategy, and growth 
• (55:30) Grow your top and bottom line with CLA

Resources mentioned on this episode

• ProShop can help you achieve on-time delivery
• Episode #73: A Recipe for Winning High-Volume Work
• Stay tuned for Top Shops 2025 registration! 
• Machine Rate Spreadsheet
• FedEx French Benefits Commercial

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