Pricing Strategies for Online and E-commerce Window & Door sales

Window and Door Manufacturers and Dealers – Which Pricing Catalog and Price Models work Best for Mobile Apps?

Many pricing book/catalog styles are available; the question is, which is the easiest to maintain and fastest over the internet?

Marked-up Cost:

Suitable for highly competitive situations. It requires the systems to calculate costs and apply a markup globally or by pricing categories, such as base product, glass, or options. A marked-up cost pricing strategy requires accurate costing information and frequent maintenance.

Price by design:

Suitable for selling Predefined or Standard products. It requires that price tables be set up for each design resulting in dozens or even hundreds of tables that need to be maintained. It is by far the most maintenance-intensive pricing structure.

Price by Window Type:

requires pricing tables (such as WxH pricing, Square footage Pricing, or United Inch pricing) for each window/opening type + option pricing. Requires far fewer tables to maintain than #2 above, but still remains maintenance extensive.

Regarding speed over the internet, they are all almost equal as the server does all the work. It is only a question of which is the fastest to process.

For Manufacturers:

While Price By Design is the fastest computationally, I recommend Marked-Up Cost followed by Price By Window Type as these are the easiest and cheapest to maintain.

Marked-Up Cost is the most flexible and best for estimating. It also ensures that changes in parts or labor costs are immediately reflected in the price.

If this is not feasible, then Price By Window Type will ensure your prices remain constant regardless of costs. It is also a very easy way to

For Dealers: (Especially those who work with many suppliers)

I would recommend Marked up cost as there is no need to create elaborate Bills of Materials to get an accurate cost.

For more information and a no-obligation discussion of your needs, please do not hesitate to contact Sherif Eldibani seldibani@opejanela.com

5 Steps to defect-free Windows & Doors

Quality Control takes planning, training, and even company culture changes. None of it is easy, but the cost of Non-Compliance and poor quality is a killer.

However, Quality is not only Free; Quality Pays.

5 Basic Concepts/Steps for a Simple, Cost-effective Quality Control Program

1 – Define your “Customer – Supplier” Pairs.

The first step is a mindset change, and it is necessary to identify What to Quality Control.

  • The basic concept is simple: when you do a job, you need to know who your customer is and what they need.
  • Salespeople must be specific in identifying the customer’s needs.
  • The worker who receives the profiles needs to know what the saw operator expects the profile to be like.
  • The person at the welder needs to know what the corner cleaner needs.
  • The corner cleaner needs to know what the hardware Station will look for.
  • The Screen Department needs to know what the Assembly station requires.
  • And so on…

Your entire Operation is a series of Supplier to Customer relationships. We call these Customer-Supplier Pairs.

2 – Create Compliance Rules for each Window/Door Series, Product, Assembly, and Part.

The next step is to identify what each “Customer” requires from its Supplier.

This information forms the basic Quality Compliance Criteria you need. Gather this information by product, part, option, and assembly.

In OpenJanela, we add this information to our Quality Compliance Rules; it could be presented in quality control spreadsheets in a manual system.

The fact is that a Quality Check for a Casement Window will be different than one for a Patio door, so it is important to do this for every product.

There are two types of Quality Control Parameters:

(In a manual system, use simple printed QC Cheat Sheets for each Station)

Pre-Processing QC Checks

  • Check Quality before adding any Labor or Material to a Part/Assembly.
  • If the Part/Assembly fails the QC check, it is immediately either remade or fixed.

This will prevent you from adding cost to bad parts or assemblies.

Example: Sash Hardware Placement Station

At this station, the Operator receives assembled, cleaned sashes from the Corner Cleaner.

Some potential checks could be:

  • Quality of the Cleaned Corners
  • Quality of the Weld – No visible cracks
  • Quality of the Profile – No obvious scratches or damage

Post Processing QC Checks

Check the Quality of the Part or Assemblies and make sure it conforms to what the next station expects.

Example: Sash Hardware Placement Station

OpenJanela displays a list of parts an operator needs to add to the Assembly. The system will also display the List of Quality Criteria that the next station expects. The operator will check each criterion and accepts or reject the assembly.

  • Quality of the Assembly: No Visible Scratches
  • Quality of the Installed Hardware: No Scratches on hardware

3 – Use Random Sampling For Large Volume Parts:

Random sampling is an ideal way to check the quality of large volumes of parts.

It assumes that all the parts were checked by the supplier (or previous station), so checking every part is unnecessary.

When you select parts randomly and enough parts (Sample Size), you can establish a percentage of defects.

Your “Level of Confidence” will increase with bigger sample size and proper randomization.

OpenJanela users can set the desired Confidence Level for the quality control process in Preferences. The system will randomly prompt operators to select parts to check. The system will do so enough times to select the Total Number of Parts (sample size) necessary to meet the desired Confidence Level.

4 – Final Quality Control Station

All products leaving the production floor need to be checked.

The list of questions at the Final Assembly should be more encompassing than those asked at processing stations.

OpenJanela’s QC Station changes dynamically based on Product Type, Options, and other factors important to Quality Control.

5 – Use simple statistical tools to analyze QC Data

Use simple Statistical Process Control to identify the frequency of Non-Compliance.

For example:

  • How many times were corners not cleaned?
  • How many times do welds fail, on which profiles, and at which welder?
  • Day/time of occurrences (time of day, season, supplier issues, etc.)?
  • Which operator was involved (to identify training or other issues)?

Such data may reveal issues and causes that are not entirely obvious. Armed with this data, you can take steps to rectify issues and prevent them in the future.

Quality Control is an ongoing process. Creating your ultimate program may take a few iterations and refinements.

Please contact me with your questions – No strings attached. I would love to hear your ideas, opinions, and concerns!

At OpenJanela, we understand that no two clients are the same. We customize quality control programs into our paperless factory production system. OpenJanela is built for the way You do business.

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How to convert your website visitors into highly motivated Window & Door buyers?

We’ve all seen how online shopping has changed the way consumers choose and purchase products. The Window and Door and Made-To-Order Industries have also benefited from this trend with increased traffic and inquiries. But now that you have the traffic, the question is how to make visitors return and stay on your website? How do you keep them interested in your products? And, more importantly, how do you convert them into Motivated Leads and even Buyers?

The answer is to get them and keep them engaged on your website by learning about your products and experimenting with product designs and configurations.

In Europe, companies like www.windows24.com, www.klarvinduer.dk, www.vinduesgrossisten.dk, and many more have incorporated web-based Configurators to engage their website visitors, generate leads, and even take initial (unconfirmed) orders.

In the US, companies like Andersen (www.andersenwindows.com) have added web-based Window and Door Designers/configurators to captivate their website visitors’ attention converting them into well-informed, highly motivated leads.

There are two types of web-based Business to Consumer (B2C) configurators:

  1. B2C Lead Engagement and Generation tools that engage your website visitors in an Educative design process. This type teaches your visitors about your products, available options, and the benefits of each, without displaying prices. The goal is to have an educated and motivated consumer ask for a quotation. www.andersenwindows.com is an excellent example of this.
  2. B2C E-Commerce configurators do the same as the first type above but go further by adding pricing and order processing. In most cases, the orders generated require follow-up from qualified salespeople before being confirmed. www.windows24.com is an excellent example of this.

Companies that sell directly to consumers import the leads generated into their CRM. Manufacturers who sell through a dealer network will distribute Leads (manually or automatically) to the appropriate dealer.

TRY IT NOW!

To help our clients increase sales, OpenJanela Software has launched its B2B & B2C Web-Based Window, Door, and Configured Made-To-Order product designer/configurator plugin. It can be easily added to any website and use an Open API to integrate to 3rd Party CRMs and Manufacturing Software (including, but not limited to, OpenJanela’s own ERP).

The main Benefits of OpenJanela’s B2C web-based Configurator are:

  • Easy to use Rules-Based Product configurator that helps you set up even the most complex engineering and pricing rules.
  • Price products based on Price Lists or through Estimates based on your actual costs!
  • Customizable product Configuration Steps to match how you do business
  • Out of the Box Configurator built for your Industry. You don’t have to redesign the wheel or spend big $$$ on creating your own.
  • Install it on your on-premise or cloud servers.
  • Customizable Look and Feel so that it can match your own website’s look.
  • Open API means you will not need to abandon or change any Software you are already comfortable using.
  • OpenJanela’s Commercial Open Source license ensures that you stay in control of your software.

For more information OpenJanela’s suite of products, please contact seldibani@openjanela.com.

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