Money through installations.
WHAT THE PATTERN IS
Equipment purchased before payment, and installations funded before completion.
WHAT THAT PRODUCES
Substantial cash committed per project.
WHAT TO ESTABLISH
A payment structure: deposit, staged, and balance on commissioning.
WHAT THE DEPOSIT SHOULD COVER
Equipment cost, at minimum.
WHY
Equipment ordered for a specific project cannot readily be resold if the customer withdraws.
WHAT TO AVOID
Ordering equipment without a deposit Completing installation before substantial payment
WHY THAT SECOND POINT
Collection after commissioning is far harder.
WHAT TO ESTABLISH ABOUT EXCHANGE RATES
That equipment is largely imported and prices move.
WHAT TO DO
State quotation validity periods, and short ones.
WHY
Honouring a quotation months later at old rates produces a loss.
WHAT TO INCLUDE
A mechanism for price adjustment on long lead times.
WHAT TO MANAGE
Stock held.
WHY
Equipment held is cash committed, and technology changes.
WHAT TO TRACK
Cost and margin per project.
WHY
Projects lose money through underestimated labour, transport and extras.
WHAT TO RECORD
Actual hours and costs against estimate.
WHAT TO REVIEW
Whether quoting is accurate.
WHAT TO ESTABLISH ABOUT MAINTENANCE REVENUE
Whether it covers the cost of providing support.
WHY
Free indefinite support is a cost nobody budgets.
