Formula: Q1 * (Q4 + Q5) * 25%

This is based on the assumption that optimizing your processes with HIPE allows a 25% reduction in the time spent preparing your quotes. This time reduction is a realistic assumption grounded in workflow improvements, automation of repetitive tasks, and better information management. By reducing the time spent, not only are labor costs decreased, but employees can also focus on higher-value activities, such as prospecting or client management.

A 25% time reduction is a conservative estimate. Companies that integrate management and automation solutions like HIPE often experience even greater productivity gains, especially if processes were previously manual or poorly integrated. This percentage provides a reasonable forecast while demonstrating significant improvement.

Sources:

25% reduction in project management time: A McKinsey study found that using project management tools can increase productivity by 20-30%. Our 25% estimate is therefore conservative and realistic.

Formula: Q1 * Q6 * Q7 * 50€

This measures the potential savings from reducing critical errors in your projects. A critical error refers to missing a manufacturing step in the quotation process or any other example that could significantly impact the quoted price provided to the client.

Our model defines the cost of an identified error for a registered order at €50 for the company. This estimation takes into account not only the time lost due to modifications, the impact on the operating margin, but also the potential effect on customer satisfaction and project delays.

Assigning a cost of €50 per error is a conservative estimate. In some industries, the costs associated with errors can be much higher, especially if errors lead to lost orders or client compensation. Using a fixed amount provides a simple and understandable evaluation of potential savings.

Beyond “critical” errors, HIPE’s digital quotation algorithm considers all manufacturing scenarios as well as supply management, including custom-sized or stock-held sheets or plates with predefined formats, and even the ability to resize or trim during production. This is done while comparing prices from multiple suppliers and considering all associated constraints (minimum order quantities in m² or tons, pallet heights, etc.). As highlighted by some of our clients, HIPE is an extremely powerful manufacturing “methods” tool that exceeds the capabilities of a human expert. These savings significantly enhance operating margins or improve sales by offering more competitive pricing to the client.

Sources:

50% reduction in critical issues: According to the Project Management Institute, organizations that use standardized project management practices experience 33% fewer failed projects. Our estimate of a 50% reduction in critical issues through better qualification and collaboration is therefore plausible within the market context we know (increasing demand year after year with a nearly unchanged revenue volume).

Average cost of errors and delays: According to a KPMG study, the average cost of a failed project is estimated at 12% of the project’s budget. Our assumption of a 10% cost overrun for problematic projects is therefore conservative.

Formula: Q1 * Q2 * Q5 * 110%

Designed to estimate the increase in sales due to process optimization through HIPE. With instant quote delivery by sales teams, or even via the customer interface, it is reasonable to expect an increase in the conversion rate from quote to order, and thus an increase in order volume.

It’s worth noting that some studies show that 50% of business-to-business orders are placed with the supplier who responds first at the quotation stage.

Furthermore, considering that 50% of quotes do not convert into orders, and that half of them are automated by HIPE, 25% of the time sales teams currently spend exchanging information between clients and support services can be redirected towards developing existing customers or acquiring new prospects.

Finally, thanks to the automation of quotes, sales teams feel more free to test “options” (carton choices, print options, finishes, and more quantity alternatives). In other words, without HIPE, sales teams limit the number of versions and alternatives they request for quotes. Some companies using HIPE have seen a 75% increase in calculations and configurations made in their first year using HIPE Instant Quotation.

Thus, this model incorporates a 10% sales increase for calculating the return on investment of the HIPE solution.

It is worth noting that some salespeople doubled (+100%) their revenue in the first year of using HIPE Instant Quotation.

Source:

White Paper by CEB & Google, The Digital Evolution in B2B Marketing: 35 to 50% of B2B sales are made by the supplier who responds first to customers.

Formula: ((Result 1 + Result 2 + (Result 3 * (Q3/100))) * 3) – (Cost of HIPE over 3 years / 3)

This estimates the return on investment of the HIPE Instant Quotation plan over a 3-year period, taking into account savings and additional sales, and comparing them to the total cost of the solution over 3 years.

In this case, the cost is estimated at €67,120 over 3 years for 10 users.

The amount of €67,120 is a total cost that includes initial setup, configuration, and training fees, as well as the subscription costs for 10 users.

For easier understanding, we provide an annualized ROI.