Re: IS AN ESTIMATE A COMMITMENT? -Reply

Subject: Re: IS AN ESTIMATE A COMMITMENT? -Reply
From: Suzette Seveny <sseveny -at- PETVALU -dot- COM>
Date: Fri, 12 Jun 1998 16:18:24 -0400

On Friday, June 12, 1998 4:07 PM, Lisa Comeau [SMTP:COMEAUL -at- CSA -dot- CA] wrote:
> Naturally you want to be as close as you can get to the =22real-time=22 =
> deadline, but always remember that one cannot afford to be conservative =
> with estimates.

A company I used to work with felt that customers were more often expecting
estimates to be "bang on" (like a quote) as opposed to a "best guess". As
a result, they offered their customers a choice of estimating methods:
1. If they viewed the estimate as carved in stone, they would pay the flat
fee. In quoting for these customers though, the company added 50% for
"contingencies" (the customers never knew that though). So if they
thought a job could be done in 50 hours, they estimated (and billed) for 75
hours. If the job was done sooner, they never refunded any money and of
course, never billed higher than the estimate.
2. The customers could elect the pay straight time used. An estimate
would be provided (ie. 50 hours) and if more time was used, the customer
paid more. If it took less time, the customer paid less.
That seemed to satisfy more customers.

Suzette




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