The Importance of Honest Estimations

What happens when someone gives an estimate knowing it won’t take as long or cost as much as quoted?

When I give a client an estimate, I am trying to give them an accurate estimation as to the time and cost of what they want. I am not trying to be a pessimist, and give them a due date two weeks longer than what they ask, just in case the worst happens.

By being honest, my clients can accurately plan their own activities and budgets.

But what happens when someone wants to appear like a hero, and gives an estimate that they know won’t take as long or cost as much?

Here is what is currently happening to me. I’m on my annual vacation, visiting some relatives out of state. I ordered a new computer during that time due to a discount available. No issue there since the schedule completion/ship date was for 2 November, and I am supposed to get back on 30 October. However, later the same day I received an e-mail saying that my computer had shipped (seven [7] days early).

Now this company – with which I’m sure they thought they were doing me a favor by shipping early – is risking me not being there to receive the delivery. Luckily I should be there the day after so hopefully we can get the new computer then. However they have:

1. Caused me to worry – what if the delivery company doesn’t wait for signature?,
2. Caused the shipping company to waste gas with multiple trips, and
3. Made me wonder about the accuracy of the rest of the order (was it rushed and not complete/accurate/parts substituted?)

Companies (yours, mine, and everyone else) need to provide accurate estimates. With the increases in technology available to everyone, this should be a simple task to accomplish if we allow it to be.

One company I used to work with got fined by one their distributors because they were early in delivering their merchandising. The distributor fined companies for their lack of accuracy because they planned their inventory, employees, other shipments, and more around the accuracy of those numbers. While this might seem extreme, it is one way to ensure estimates are accurate.

So what do you do to ensure your estimates are accurate?