Most firms that quote for a living have the same pile. Quotes that went out, got a polite thank you, and then nothing. No order, no "we went elsewhere", no decision. Whoever wrote them has moved on to the next job, and nobody has gone back.
Most owners know the pile exists. Few have put a number on it. Here is how to do it, in about ten minutes, with a spreadsheet you already have.
1. Pull the list
Take every quote from the last 12 months that has no decision either way. Not the ones you lost, and not the ones still inside their validity period this week. The ones that went quiet.
If you can't produce this list in ten minutes, stop here. That's your first finding, and it matters more than the number.
2. Add up their value
Total the quoted value. This number will look large, and it means very little on its own. Don't put it in a board pack.
3. Pick a recovery rate you'd believe
Some of these quotes are dead: the project was cancelled, or the customer bought elsewhere and didn't say. Some are only waiting. Pick the share you honestly think would turn into an order if someone asked properly. Be harsh. We use one in ten as a starting point for the example below, but your own win rate and your knowledge of the customers are better guides.
4. Use gross margin, not order value
Multiply the recovered order value by your gross margin. This is the step most people skip, and it's the one that keeps the number honest. An order is worth what it leaves after materials and labour, not what it's invoiced at.
5. Set it against the cost of asking
Following up a quote properly takes a few minutes per touch. Even with three touches per quote, the hours are small next to the gross profit at stake. That's the comparison that tends to change minds.
The sum for 40 stalled quotes, at two recovery rates
An illustrative calculation, not a forecast.
| Stalled quotes in 12 months | 40 |
|---|---|
| Average quote value | £22,000 |
| Value quoted and left waiting | £880,000 |
| Orders if one in ten comes back4 orders | £88,000 |
| Orders if one in twenty comes back2 orders, a recovery rate of 5% | £44,000 |
| Gross profit at a 30% marginOne in ten, then one in twenty | £26,400 or £13,200 |
Three mistakes that make the number useless
- Counting order value as the prize. It flatters the figure and nobody in finance will believe it.
- Counting quotes you know are lost. They inflate the pile and hide the ones worth chasing.
- Treating it as a forecast. It's a reason to ask, not a promise. The real figure is whatever comes back and can be traced to a quote number.
What to do with it
If the gross profit figure is bigger than a few days of someone's time, it's worth following those quotes up. The Quote Follow-Up Kit gives you the three emails we'd use. If you'd rather it was done for you, that's what Lost Quote Recovery is, paid only on orders that come back.
Not sure stalled quotes are your biggest problem? The free Constraint Check at Constraint First scores both sides of the firm in about four minutes and names the likely constraint.