Marketing Strategy for Small- to Medium-Sized Manufacturers

Low Hit Rates, High Hit Rates, and Pricing Problems are Canaries in the Mineshaft

Of the 111 firms using quotes, 70 reported hit rates shown in Table 23. Note that almost two-thirds have hit rates of 30% or below. Although there is no standard specifying a good or bad hit rate percentage, percentages below 30% and over 65–70% should indicate problems. For example, a low percentage could indicate a very competitive market—or weak competitive position—and a very high percentage can indicate the firm is “buying” the business—leaving money on the table by too low a price. Either situation calls for an explanation because it could be an early warning of competitive problems.

Table 23. Quote Hit Rate

A key indicator of a competitive market or that ...