In this article, you will see the estimation's benefits
What is estimation?
Estimation is the basis for good pricing. It is through it that your agency will be able to determine the amounts charged for each project. The calculation base includes internal costs and services to be outsourced, such as graphic suppliers, offline media vehicles, digital media, and event preparation. With this broader view, the agency will be more assertive when passing on values to the client, minimizing and, in many cases, eliminating the possibility of loss.
The way is: Contracts > Estimation.
Upon entering the screen, you will need to select a project to perform the estimation. To do this, click on the +New Estimation button.
A pop-up will open, and you will select the desired project.
We will detail each item of the estimation to better understanding.
In the information that appears at the top of the estimate, we have the information about the estimated proposal value, the estimated value for the agency, the estimated profit, and, finally, the profit margin that, according to the estimate, you will have.
2. Internal costs
Within the estimate, the internal cost represents the agency's costs for carrying out the project. These costs are measured based on the number of hours worked x hourly value of the related employees who will perform some action on the project or even according to the department profile that will work on the project. For the internal cost to be even more accurate, we advise that the employee's hourly rate should not be based only on the salary amount. You may want to include the agency's structure costs (fixed costs).
To complete the internal cost calculation, you can enter a profit margin that you want to receive on the internal cost and the tax amount.
3. Third-party services
When estimating a complete project, third-party services must be included (Budget, Event, Media, and Digital Media).
In each field, you will fill in the estimated amounts with the demands of third-parties, their commissions, and fees. These items will be added to the proposal's total value and the estimated profit.
4. Estimation advantages
In addition to having a more accurate view of the costs and profits expected in each project, traffic will follow the estimated x realized about the hours stipulated in the project (timesheet). There will be gains in control and monitoring so that your team does not use hours beyond the estimate. To access this information, follow the path Projects > Activity management > Report > Planning.
On this screen, you can also use the advanced search features to find the desired estimate. You can also print a report in PDF or Excel.
You will have data on the monitoring of what was planned and accomplished. Also, you can see the variation of all of that in percentage.
Another point of comparison will be at the closing of the proposal. The summary will contain the proposal value, what was estimated, and what the customer actually approved.
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