QuotedPartAnswers · Updated 2026-10-30
Why does my machine shop keep losing bids?
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Losing bids is not proof that your hourly rate is too high. The cause may be a scope mismatch, a late answer, an uncompetitive quantity break, a lead-time promise, or a buyer who never had authority to award the job. Start a loss log. Worked example: across 20 RFQs, you quote 12, win 3 and lose 9; four losses are price, two are lead time, two are capability fit and one is canceled. Your quoted win rate is 3 ÷ 12 = 25%, but cutting rates only addresses the four price losses.
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Classify the loss while the details are fresh
Record RFQ date, part and revision, quantities, your price, promised lead time, whether the buyer replied, and the reason given. Use one primary reason so the data can be counted: no-quote or capability, price, delivery, terms, technical uncertainty, or no decision. “Lost” is different from “no response”; a buyer who never opened the quote cannot tell you whether your price was wrong.
Ask one neutral follow-up question: “For our records, was the deciding factor scope, price, delivery, or another supplier capability?” Do not argue with the answer or send a correction unless the buyer asks. A month of clean reasons is more useful than a guessed industry benchmark.
| Outcome | Count | Share of quoted RFQs | Action to test |
|---|---|---|---|
| Won | 3 | 25% | Keep routing and follow up |
| Price loss | 4 | 33% | Check cost and quantity break |
| Lead-time loss | 2 | 17% | Validate queue and outside-process dates |
| Capability fit | 2 | 17% | No-quote earlier or partner |
| Canceled/no decision | 1 | 8% | Separate from competitor loss |
Check price composition before lowering it
Rebuild one lost quote from the customer’s required quantity. A one-piece bracket with $90 setup, $24 material, 18 minutes machine time at $120/hour and 30% markup costs $150.00: $90 + $24 + (18/60 × $120 = $36) = $150 cost, then $195 price. At 10 pieces, setup is $9 each and the same assumptions yield $88.50 cost and $115.05 price. If you quoted only one quantity, the buyer may have compared your one-off price with a competitor’s 10-piece break.
Check the revision and included scope as well. A quote that includes inspection reports, certs, packaging and anodize can look high beside a quote that excludes them. Put exclusions and finish lot minimums on the offer so the comparison is like-for-like.
Fix response and fit, not just markup
If the losses cluster around response time, set a simple service level: acknowledge an RFQ the same business day, ask missing questions together, and give a date for the actual quote. If they cluster around lead time, stop promising the ideal schedule and quote the calendar you can support, including outside processing. If they cluster around parts that need a machine you do not own, mark them no-quote quickly rather than spending hours on an optimistic estimate.
For price losses, inspect setup standards, material yield and outside-process markups before changing the sell rate. Run a small test: revise the routing on five comparable parts, send the same scope at the new price, and compare outcomes. Do not call a change successful from one win.
What to do next
Make the loss log part of the weekly production meeting. Review counts, not anecdotes; assign one experiment for the next month; and keep the original quote beside the revised one. A healthy quoting system can show where work is won, where it is declined, and which assumptions deserve better evidence.
Illustrative loss-review inputs
- • 20 RFQs received; 12 quoted; 3 won.
- • Loss reasons: 4 price, 2 lead time, 2 capability, 1 canceled/no decision.
- • Example bracket: $90 setup; $24 material; 18 min at $120/h; 30% markup.
| Measure | Result |
|---|---|
| Quoted win rate | 3 ÷ 12 = 25% |
| Price at 1 piece | $195.00 |
| Price at 10 pieces | $115.05 each |
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