Readers Weighing In — Dickeson

Another writer said, “...We are with you all the way regarding capacity utilization and cycle time reduction as the path to profitability. The nice thing about this is that one of the most important client demands is: ‘how fast can you do it?’...That said, we still do our pricing with a traditional budgeted-hourly-rates (BHR) approach. The reason is simple; that is the best way for us to predict where our competitor’s price will be. Once we know where they are, we can use PVA factors to make smarter pricing decisions than they do...The point is that as long as the rest of the world hasn’t yet changed their thinking, then we need to look at pricing both ways.”